AOL to cut 2,000 jobs

AOL to cut 2,000 jobs

Summary: Time Warner's AOL unit plans to cut 2,000 jobs, or roughly 20 percent of its global workforce. The layoffs, which come as AOL transitions from a subscriber-based business to an ad-supported one, aren't unexpected.


Time Warner's AOL unit plans to cut 2,000 jobs, or roughly 20 percent of its global workforce.

The layoffs, which come as AOL transitions from a subscriber-based business to an ad-supported one, aren't unexpected. According to Bloomberg, 1,200 layoffs will come from the U.S. AOL plans to redeploy the funds to high growth areas.

Kara Swisher has the AOL memo from CEO Randy Falco. The gist:

  • AOL has transitioned into a portal and ad network. It is growing its key properties and the emphasis is on becoming a large ad network.
  • AOL is going global in seven new countries and "globalizing our product development efforts."
  • The layoffs will occur "over the next couple of months." Falco also argued that AOL is now "in a position to win as an advertising supported business."

Topics: CXO, Enterprise Software, IT Employment

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  • The writings on the wall

    Isn't it just a matter of time before AOL sinks? they had a specific function and a large market at one time. Now things are very different and they are about as necessary as a buggy whip. Besides that, its near impossible to send e-mail to an AOL subscriber. As far as I can tell, the only people still using AOL are older customers and computer novices.
    • Exactly!

      I am surprised AOL is even still around. There overpriced, underperforming service is a dinosaur. Personally, I would think more people would be tired of having the Internet (as AOL sees it) spoon-fed to them. Older people and novices - Yeah, that just about sums up there customer base.
  • RE: AOL to cut 2,000 jobs

    And yet another example of how to ruin a good thing.
  • AOL = Ads On Line

    Over the past year AOL has become one big advertisement, they are perfectly happy to alienate members who can subscribe to broadband and get off their dial up service, which has been their money pit.

    They are serving up these flashing, blinking, running across the screen ads even to paying members which either can not afford or still can't get broadband making the experience very slow and depending on the phone line some times impossible.

    Clearly AOL no longer has the member base to require that many employees.
  • This is a very good thing. Think about it...

    ... First, nobody in their right mind would want to be associated with the slowest thing since frozen molasses, ... except M$ Ads Dept, who has no understanding after running frozen molasses transfusions into their veins for years. Next, who wants to be associated with people who cannot afford real access, or are too remote? I mean, they can't get anywhere to shop and they have no money, right?

    The only reason I'd be wanting to use AOL would be to signal to the world that I was too poor/cheap to use anything else. Why, even the Phishers would leave me alone, what's the benefit?

    And, not to forget - Security; let's face it; AOL users don't have virii, or bots, or trojans; the loading process "times out" on their system long before the malware can finish the process.
    • AOL

      • Nah...

        ... PRUDE has a plethora of ring tones.

        But, did you hear the one about the monastary with the bell tower when the bell ringer died???
  • AOL

    does PRUDE ring a bell
  • AOL to cut 2000 jobs

    As an AOL subscriber I will watch out for the effects on the ISP's homepage, as AOL goes to an advert supported ISP!.
    Hopefully it will be no worse than other advert supported sites where the "links" are easily spotted and clicking avoided!.
  • Unjustified & Biggoted ...

    I have been using AOL for the past 15 years, with very few issues; and those that I have experienced have been resolved very quickly. This meant that I changed from dial-up to broadband when it first became available (approx 5 years ago).

    Here in the UK AOL were one of the first companies to offer a reasonably priced broadband service, where I was able to use a VPN client without my ISP chocking the service; or demanding that I purchased a business package.

    Over the past 5 years I have only experienced good customer service; with the price of my service being reduced over this period of time from ?27.99 to it's current cost of ?15 per-month for 8Mb - don't forget it costs more here in the UK than the US ...

    The other distinct advantage is that I no longer need to use the AOL software; running a router, I am able to collect and read all of my e-mail via MS Outlook without issue ...

    It would be a pity if AOL, as one of the founding ISP's was allowed to crumble into oblivion which is something that TW seem to desire.
  • AOL Layoffs

    An inside source at AOL Columbus told me that they fired all but 60 of the employees today. The 60 remaining are working till December 14th finishing up their projects. After they leave on the 14th AOL Columbus will lock its doors forever. I find it very hard to believe because the Columbus site has the servers that run the Midwest and East coast. I worked security for a year at AOL. I left 2 months ago for another job and it looks like i got out just in time. All of the contractors will have to find new posts come December. This layoff is going to be a MAJOR headache for the people at the AOL Columbus campus. I wish them all the best in their future endeavors.
  • RE: AOL to cut 2,000 jobs

    AOL cut my monthly fee from 26.95 to 9.95 after I complained to them how horrible their service has become. I can't complain about my new monthly fee but I can still complain about their lousy browser and their sickening ads. They are everywhere! Boo to them! I still use them because I am a member from day one and have tons and tons of files and images online. If they go down I will cry but will get over it.
  • they are all posting on CJs