AOL Frees Services, Decimates Workforce
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Written By Reprise Media | August 4, 2006 | Share This
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Maybe ‘decimate’ isn’t the right word, though, since that would technically mean AOL’s telling one in ten to hit the bricks. In actuality, the company’s strategic overhaul will necessitate the departure of 5,000 employees, more than 25 percent of the current workforce, says the LA Times (free reg. req’d).
AOL will become a free portal in September, marking the end of its life as a subscription-based broadband internet access service, and AOL email addresses will be available to all - and who could resist the prestigious cachet that would come with one of those? AOL will turn its attention to ‘net advertising, the same train Google hitched on their meteoric rise to the top. Jobs will be eliminated from marketing and customer service, as the firm closes a number of call centers.
The company will continue to offer dial-up ‘net access, even as it restructures. According to the Baltimore Sun, AOL hopes that technology expertise from Advertising.com and video advertising firm Lightningcast (both recent acquisitions) will provide the necessary know-how to compete with companies that enjoy a large head start in online advertising.
Topics: Advertising: Online |