Time Warner's AOL closes China R&D unit, sheds 56 jobs

BEIJING (Reuters) - Time Warner Inc's AOL said on Thursday it is closing a research unit in China, shedding 56 jobs as part of global cost cutting measures.

"Given the poor economic circumstances and in connection with a larger corporate reorganization ... we have decided to terminate the company," an AOL spokesperson said in an email sent to Reuters.

The move to close AOL Beijing Technology Research & Development Co will result in the loss of 56 jobs, but AOL will continue to publish its homepages and other websites for Japan, China, Hong Kong, Taiwan and South East Asia, it said.

The announcement comes after AOL said in January it would cut about 700 jobs, or 10 percent of its workforce, as it copes with an advertising slump.

"These decisions are never easy and Beijing has been a great host for our research and development operations," it said.

The cost-cutting moves could make the company more attractive to possible suitors like Yahoo Inc.

Google Inc recorded in January a $726 million writedown of its 5 percent stake in AOL, implying AOL is now valued at around $5.5 billion.

($=6.84 yuan)

(Reporting by Kirby Chien; Editing by Ken Wills)