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AOL To Lay Off 2000 Out of Its 10K Employees

By Rafat Ali - Mon 15 Oct 2007 08:12 AM PST

The much-rumored AOL (NYSE: TWX) layoffs have been officially announced, at least internally...Kara has the memo here. “We refocused the business around three core areas – Platform-A, Publishing and Access – and are now managing these as three distinct but related components,” said CEO Randy Falco in the memo. Platform-A is its online and mobile ad serving and advertising business.

“This realignment will allow us to increase investment in high-growth areas of the company – as an example, we added hundreds of people this year through acquisitions – while scaling back in areas with less growth potential or those that aren’t core to our business, as we did with the sale of Tegic.” So it rests for now, until more rumors of the age-old Time Warner-divesting-off-AOL crop up, again.

In December, AOL completed a major layoff of nearly 5,000 worldwide as part of a major restructuring.

Meanwhile, a small side story: AOL’s EVP and head of HR at its Dulles, Virginia, headquarters, Lance Miyamoto, quit the company last Thursday, though he didn’t elaborate on circumstances beyond “I have left” (via WaPo).

Updated: About 1,200 of these cuts will happen tomorrow, most in U.S. and the rest will happen in Europe and India, reports Saul. Employees will be given a severance package of at least four months pay.

Posted in: Companies, Time Warner, AOL



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1 Response:
  • From Happy Igotout Mon 15 Oct 2007 03:28 PM

    Oh Ron,
    What have you done?
    You’ve screwed the pooch,
    and in turn screwed everyone.

    Randy, Jeff had high hopes,
    For you to build off Miller’s coat (tails)
    But you had no clue,
    And now AOL’s broke.

    There was a strategy,
    Now there’s none,
    The future hope and dreams,
    They’ve all gone.

    Yet Jeff sit’s in his ivory tower,
    The board gave him the nod and the wink,
    They’re giving him all the power,
    And the industry and wall street thinks that stinks.

    Ohhh Rondy what will you do,
    Soon Jeff will need a lamb,
    To cover up what he has screwed,
    And we all think and hope it’ll be you.

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