6 months ago, Verizon announced the44 billions of dollarsThe price of the acquisition of AOL. At present, AOL is starting to lay off. TechCrunch was informed that AOL has cut about 100 people, the news has been confirmed. AOL seems to be cutting off some of the functions that overlap the Department, and to weaken the other functional departments.
AOL brand and senior vice president of communications Caroline
The latest round of layoffs of 2/3 from the AOL member, and the rest are cut staff from marketing, advertising and social media and other departments, and TechCrunch and the Huffington post and other AOL brands are not related. AOL plans to cut some operations to support the sector, while more inclined to work on a specific business team.
We were informed that, in this regard, the first half of next year, AOL will have some recruitment. And as a result of strategic adjustment, the part of the staff may be cut yesterday may turn to other positions.
On the AOL member business, the Department of layoffs is not surprising. Taking into account the overall market trends, as well as AOL's focus on content and advertising business to build, dial-up Internet business continues to account for a large part of the company's revenue is indeed surprising. Even to the extent thatBy the end of 2013, member business is still the largest source of revenue AOL.
In the near future, the revenue contribution of member business is still very large, but it is showing a downward trend. In the first quarter of this year, that is, AOL as a Independent Company released the last quarter of earnings, membership business revenue of $1.826, accounting for about 30 of total revenue. However, after being acquired, AOL's Internet access services and Verizon's business there is a conflict. Therefore, as part of the business integration, cost optimization, this part of the business will be streamlined.
Although AOL is trying to weaken some of the functions, but the company is also trying a variety of ways, the use of scale economies, and promote its brand and advertising services into a new era of media.
Earlier Monday, CEO AOL Tim
According to our understanding, this will be accompanied by a more massive adjustment. A number of brands will be incorporated into the content of the new management system, assist in the development of cross media native advertising business, and make the AOL more convenient to interact with the Facebook and Instant Articles and three party platform. AOL appointed in September this yearJimmy(Maymannn Jimmy) executive vice president, as well as the content and consumer brands business president. He will focus on optimizing these aspects in a more consistent way.
In the course of development of the media business, Verizon has fully demonstrated the determination to carry out acquisitions. Recent rumors that the company is likely to acquire YAHOO's Internet business. In addition Verizon may also be acquired by other media market concerns.
With further strengthening the high growth business, to give up the business, the AOL is acquired after the Verizon will further layoffs is worth attention. AOL currently has approximately 6000 employees. In January this year, before the acquisition of Verizon, AOL hasShut down a number of poor performance sectorsAnd lay off 150 people.