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BBC AOL, the internet arm of Time Warner, is to sack 1,300 of its US call centre staff because, it said, customers are now better equipped to help themselves.

Customers have become more internet “savvy” and had better tools to resolve their own technical problems, said spokesman Nicholas Graham.

The number of callers has also slipped because subscriptions are on the slide.

AOL had 26.7 million customers in September 2002, but this had fallen by more than 25% by last December.

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BBC Dell, the world’s largest computer manufacturer, has warned that its first quarter results will be worse than expected because of big price cuts.

The Texan-based giant now expects profits for the first three months of 2006 to hit 33 cents per share on revenues of about $14.2bn (£7.6bn).

This compares with market expectations of 38 cents per share from $14.52bn.

Dell has cut prices to keep up sales growth, in response to competition from rivals such as Acer and Lenovo.

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BBC Internet giant Yahoo is on Monday due to launch an upgrade to its web search advertising system, as it aims to catch up with market leader Google.
Yahoo’s new software system aims to let advertisers target potential customers more accurately based upon the words users type into the search box.

“Understanding how ads actually work together is why we are introducing with the new system,” said Yahoo.

Analysts said Yahoo was now catching up with Google’s technology.
According to recent figures, Yahoo has a 27% share of the search engine market, behind Google’s leading 42%.

Microsoft’s MSN has a 13% stake, with Ask on 6%.

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