AOL Inc., a New York based company and the internet company spun off from Time Warner Inc. in December, announced that it has launched a involuntary job reduction today after 1,100 workers accepted buyout packages as part of a $200 million restructuring.

Moreover, the company also plans to close its offices in Spain as well as Sweden, said Tricia Primrose, an official. Further, she said many of the affected United States workers will leave the company on January 13th.

According to the statement issued by the company in November 2009, “It planned to cut its 7,000- person staff by about one-third to help reduce annual operating costs by about $300 million. The company is combating an advertising slump that contributed to a 50 percent drop in operating income in the third quarter.”

Meanwhile, AOL gained 12 cents to $25.80 at 12:45 p. m. in New York Stock Exchange composite trading.