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AOL: Impact of Mass Firings

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Published By:

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Silicon Alley Insider

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Q2 2007 ACTUALQ2-07A

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Revenue$1,253

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Cash Costs$768

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Adj. EBITDA$485

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Margin39%

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Assumptions:

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Employee-Related % of Costs65%75%85%

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Headcount Reduction15%20%25%

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Employees11,00011,00011,000

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Employees Whacked1,6502,2002,750

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Q2 2007 PRO FORMAConserv.BaseAggress.

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Revenue$1,253$1,253$1,253

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Cash Costs$693$653$605

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Adj. EBITDA$560$600$648

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Margin45%48%52%

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Sanity Check:

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Cost Savings$75$115$163

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Avg. Per Whacked Employee$45,382$52,364$59,345

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Published By:

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Silicon Alley Insider