AOL May Cut Up to 700 Jobs
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The report first appeared Friday in TheStreet.com which said AOL could trim 700 of Netscape's 2,500 employees as early as next week. The story cited unnamed company sources.
The AOL-Netscape buyout was original valued at $4.2 billion. However, AOL's skyrocketing stock has increased the deal to $9 billion.
America Online (AOL) spokesman Jim Whitney declined to confirm the report. The company said more information will be released next week on how AOL plans to integrate Netscape. A Netscape spokesman also refused to discuss the possibility of layoffs.
In a separate agreement announced the same day of AOL's acquisition of Netscape, Sun agreed to pay AOL $350 million over the next three years in licensing, marketing and advertising fees, as well as major minimum revenue commitments.
The companies' marketing venture includes co-developing enterprise e-commerce applications and incorporating Sun's Java technology in creating next-generation Internet devices. In addition, Sun and AOL will expand their respective sales channels, integrating each other's products and services.
Sun will become a lead systems and service provider to AOL and AOL has committed to purchase $500 million in systems and services from Sun through 2002 for itself and its e-commerce partners.