AOL to Lay Off Approximately 700 in Rolling Cuts
Cuts will occur in units that don't directly support its Platform A, MediaGlow, and People Networks divisions.
Cuts will occur in units that don't directly support its Platform A, MediaGlow, and People Networks divisions.
Confronted with heavy declines in digital ad spending, AOL plans to lay off approximately 700 staffers. The cuts will affect roughly 10 percent of the Time Warner unit’s global work force, and will be mostly complete by the end of March.
“Online marketers have tightened their ad buying across the board, reducing their spend by hundreds of millions of dollars,” Falco said in a memo to AOL staffers. “As a result, we will be reviewing our entire organization to further align resources and expenses against the real revenue opportunities in this difficult market.”
Many of the cuts will occur in units that don’t directly support AOL’s three core businesses: Platform A, its ad network unit; MediaGlow, consisting of AOL and other in-house sites; and People Networks, its social media cluster containing Bebo, AIM, Goowy and other properties.
AOL products that do not reside within those three core areas, and are therefore potential cost-cutting targets, include video search platform Truveo and MapQuest.
Falco said additional steps have been taken to cut costs, including freezing merit-based pay increases and consolidating its two facilities in Mountain View into one.
Other publicly traded companies have reported a similar fall-off in demand for display advertising. In its earnings report this week, Yahoo reported a drop in the volume of premium display ads it’s able to sell. And The New York Times said online ad revenue in Q4 fell 3.5 percent, a sharp reversal of its growth trajectory of 15 percent during the previous nine months.
More about:
Lucy helps organizations leverage knowledge for in... View Tech Talk
TVSquared is the global leader in cross-platform T... View Tech Talk
Grata is a B2B search engine for discovering small... View Tech Talk
Streaming has become a staple of US media-viewing ... Download Now
Data is the lifeblood of so many companies today. ... Download Now
This report documents the findings of a Fireside c... Download Now
Customers decide fast, influenced by only 2.5 touc... Download Now
Streaming has become a staple of US media-viewing habits. Streaming video, however, still comes with a variety of pesky frustrations that viewers are ...
View resourceData is the lifeblood of so many companies today. You need more of it, all of which at higher quality, and all the meanwhile being compliant with data...
View resourceThis report documents the findings of a Fireside chat held by ClickZ in the first quarter of 2022. It provides expert insight on how companies can ret...
View resourceCustomers decide fast, influenced by only 2.5 touchpoints – globally! Make sure your brand shines in those critical moments. Read More...
View resourceMarketers today need to thoughtfully select visuals that align with their content, boost SEO performance and drive ROI Read More...
View articleHow the sunglasses giant created subconscious brand recall value with music festival-goers through the power of strategic partnerships and experientia...
View articleIn life, as much as on LinkedIn (or Facebook, Twitter, etc.) people and brands who blabber on about themselves become annoying and best avoided, soone...
View articleBuilding trust in your brand is hard enough. Now take a situation where your audience is so cynical of your product offering some of them even call fo...
View articleThere is room for better lead capturing as ABM evolves in a cookieless world Read More...
View articleTop-of-mind action points that will be valuable to challenger brand marketing for the rest of 2021 and 2022 Read More...
View articleOmnichannel marketing presents an opportunity to marketers but requires better use of data Read More...
View articleThe dark horse your business needs to outperform competition and win at search Read More...
View article