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According to a company source, AOL Time Warner plans "massive layoffs, cutting really deep through Warner and Time Warner."
ENTERTAINDOM R.I.P.
Employees Receive Word Via Snazzy "You Got The Ax" Icon On AOL Homepage

AOL Time Warner has pulled the plug on struggling web entertainment hub Entertaindom.com.

Cnet.com reported that the site, which will cease operations Feb. 1, will be incorporated into the 200-employee Warner Bros. Online site.

Said one source: "Entertaindom is going away. Time Warner is no longer making a play to become an entertainment portal because it flat out didn't work."

Entertaindom was one of many online failures for Time Warner. The attempt to create a series of online destinations followed TW's ill-fated Pathfinder site. In the past year, Time Warner's Digital Media division has lost top brass and abandoned plans to spin off the division as a separate company.

The shutdown is the second cost-cutting move implemented by AOLTW since its merger last week. On Wednesday (1/10), CNN announced it would lay off 400 employees, with one-third of cuts coming from its interactive division.

Warner Bros. spokeswoman Barbara Brogliatti maintains the company is not looking for major cutbacks. "We're looking at what makes sense for the long term. We don't want to make a short-term mistake," she said.

According to a company source, AOL Time Warner plans "massive layoffs, cutting really deep through Warner and Time Warner." The source added the cuts could damage the entertainment unit's offline production operations. "What's ironic is it's affecting areas that AOL can't take over. AOL employees aren't going to walk in and start shooting television shows," the source said.

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