America Online Inc could be set to cut about 30% of Netscape’s workforce now that its acquisition of the company has been completed. According to reports which cited sources close to the company, up to 750 people could be handed pink slips beginning as soon as this week. It has been expected that following the close of the more than $10bn deal, certain overlapping functions such as marketing and corporate communications could be pared down considerably.
AOL wouldn’t comment on the reports and promised more information this week concerning the integration of Netscape and the combined company’s strategy going forward. It also remains to be seen whether Sun Microsystems Inc’s part in the three-way deal will lead to even more Netscape job cuts due to product overlaps between the two companies.
