Less than a week after the finalization of America Online's purchase of Netscape, reports are circulating that AOL may cut 20% to 30% of Netscape's workforce.
AOL announced its intent to buy Netscape this past November in a stock-for-stock transaction worth $4.2 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.
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. Sun had previously announced that it would work with Netscape to develop the next version of Netscape's software clients and build Internet devices using Sun's Java programming language.
