AOL is about to make substantial staff cuts, with the work force reductions designed to consolidate operations after recent acquisitions, Reuters reports, citing a source who’s familiar with the situation.
About 500 jobs are expected to be eliminated, or about 5% of the company’s work force.
“Most of the cuts will be in corporate units, including human resources, finance, marketing and communications, while resources will be shifted to AOL’s mobile, video and data businesses, the source said. Chief Executive Officer Tim Armstrong informed employees about the cuts in an email on Thursday morning,” Reuters reports.
In the email, Armstrong said: “Due to the deals we have done over the past 12 months, we have added over 1,500 new people to the company. As we have settled into those changes, there are a number of areas that require consolidation to improve operations and limit the amount of hand-offs in our business processes.”
Reuters adds: “Verizon bought AOL for $4.4 billion in July of last year, betting that a push into mobile video and targeted advertising could help it tap into revenue outside the saturated wireless market.”