Less than a week after the finalisation of America Online's purchase of Netscape Communications, reports are circulating that AOL may cut 20 per cent to 30 per cent of Netscape's workforce.
AOL announced its intent to buy Netscape in November in a stock-for-stock transaction worth $US4.2 billion and last Wednesday announced the deal was complete, with Netscape stockholders approving the transaction. Netscape stockholders will receive 0.90 shares of AOL common stock for each share of Netscape common stock.
Today, several reports indicated that AOL could cut up to 30 per cent of Netscape's workforce, or 750 employees out of the company's 2500 workers. According to The Wall Street Journal and other sources, the cuts could affect Netscape workers whose jobs overlap with positions at AOL and at Sun Microsystems, which announced in November it will work with Netscape to develop the next version of Netscape's software clients and build Internet devices using Sun's Java programming language.