Huffington Post Owner AOL Lays Off 5% Of Staff: 500 Workers Lose Their Jobs

Tyler Durden's picture

Following news that vocally pro-Hillary Clinton Spanish language media conglomerate Univision, which had a Q3 loss of $30 million after revenues dropped 8% to $735 million, would lay off between 200 and 250 workers, in part driven by the media organization's recent acquisition of insolvent Gawker Media, on Thursday ReCode reported that the media bloodbath continues, with another 500 workers, or 5% of the total staff, set to be let go by AOL.

AOL CEO Tim Armstrong said that most of the cuts will come in its corporate units, while resources will be shifted more at mobile, video and data offerings going forward.

“The layoffs are related to a 2017 strategy where we will add to our business,” he said. “These are super targeted by area and we will be re-growing especially in video and mobile.” In a memo sent to employees, Armstrong reiterated that plan saying that “based on our strategy and the changes we see in the industry, we are reshaping parts of the company today,” he wrote. “The company ... will be aligned to drive a talent and operations plan in line with profitability.”

The cuts were unvilved after AOL added about 1,500 workers this year from an advertising deal with Microsoft and its purchase of Millennial Media, which prompted the consolidation to improve financial performance. “The best way for us to grow is to move in front of change rather than be moved by change,” he wrote.

More details from ReCode. which suggests that even more layoffs will be coming:

As Recorde adds, AOL, a company which has gone through many organizational iterations over the years before it was bought by telecom giant Verizon last year, is currently split two parts, media and platforms. Most of its content properties like the Huffington Post and TechCrunch are in the media unit, while its advertising technology is in the platform groups.

 

Armstrong said the layoffs are not related to current discussions AOL execs are having with Yahoo counterparts about integration between the two companies. Later, there will also be plans for Yahoo itself too. Verizon said earlier this year that it would pay $4.6 billion for Yahoo, but the completion of the acquisition remains mired in issues related to a breach that impacted 500 million customer accounts.

 

Yahoo is investigating the hacking, which sources said appears more serious than the company originally reported. Yahoo itself reported last week that the breach took place earlier than was previously reported. The situation has prompted Verizon to seek changes in the deal’s price — of upwards of $1 billion — to protect it from potential liabilities.

 

As Verizon and Yahoo continue those talks, AOL and Yahoo will continue to discuss possible integrations and to determine which Yahoo execs could be part of leadership. AOL, for example, recently lost its top sales exec Jim Norton, a position that most obviously would go to Yahoo’s chief revenue officer Lisa Utzschneider.

Below is Armstrong's memo to the soon to be reduced staffers:

AOLers -

 

Over the last 3 months, we have solidified the operating plan we will use to propel AOL to our 2020 goals and mission of Building Brands People Love. Our process forced us to look at our strategy, goals, and organization in relation to the dynamically changing industry we compete in as a company. Based on our strategy and the changes we see in the industry, we are reshaping parts of the company today.

 

The company will be focused on two simple global business units: Media (including Search and Communications) and Platforms and will be aligned to drive a talent and operations plan in line with profitability.

 

Mobile, video, and data are the key growth drivers of that strategy and the company will be putting resources into each of these areas.

 

There a few important principles and factors driving our strategy decisions for 2017:

 

1. Despite being in the midst of transitioning to a business model that heavily relies on off-network content distribution and programmatic advertising, we will operate profitably in the new industry paradigm. We have always chosen to make changes ahead of the curve and we are doing that again today.

 

2. 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. This will impact a small percentage of the global workforce.

 

3. Our planning process was built around the strategy and around the best way to operate that strategy. Each area within the company was reviewed through the lens of our strategy and while we will be reducing some areas for 2017, other areas will add headcount and resources.

 

4. The talent we have at the company is very strong. The changes we are making are about setting the company on a path to successfully operating in today and tomorrow's reality.

 

We have a mission and responsibility to continue to move AOL into the future - something we have done a good job of in the past. The best way for us to grow is to move in front of change rather than be moved by change. The more we differentiate our strategy and products, the more we move from strategy to execution, and the more we speed up our product delivery, the more value we will confer to our consumers and customers - and that is where our focus needs to live.

 

Teams across the company will be meeting with their managers today to discuss the changes. The talent affected at the company today is important and we will come together to help our people take the next steps in their careers.

 

-TA

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froze25's picture

So is this why they are going after the Alt-Right, because they can't compete?

Good redit thread if anyone is still interested in the Clinton pedophilia ring.

https://www.reddit.com/r/pizzagate/comments/5da0kp/comet_ping_pong_pizza...

Lots of new dirt uncovered.

Looney's picture

 

I still have an AOL floppy disk somewhere.   ;-)

Looney

King Tut's picture

A DJ in Chicago was just talking to the guy whose voice that is- the guy is driving for Uber in Ohio.

847328_3527's picture

Ask Soweto for a "shovel ready job."

And there's always soros protester jobs for $35/hour but you may have to throw a few bricks and get your tender hands dirty burning and looting. Also, don;t be surprised if some day the victims start fighting back.

 

 

JRobby's picture

AOL

(Laugh Track Deafening!!!)

PrayingMantis's picture

 

AOL ... Another One Lost ... :D

BorisTheBlade's picture

Gotta admire corporate doublespeak.

AOLers -

Over the last 3 months, we have solidified the operating plan we will use to propel AOL to our 2020 goals and mission of Building Brands People Love.

Unfortunately not all of you will make it to 2020 and we sincerely doubt that by the time we are done there will be any brand to speak of, but don't dwell too much on the details. Vision is still great, enjoy your unemployment.

wren's picture

Were they union employees..........?

ZH Snob's picture

good start.  but try harder.

larz's picture

Trumps fault. Obviously

SomethingSomethingDarkSide's picture

They might want to try "Real News" instead of Pravda re-run garbage.

BabaLooey's picture

Couldn't happen to a nicer bunch of asshats.

chubbar's picture

AOL ran negative Trump articles and/or positive Hillary articles every day for the past year. Fuck all of them for having zero scruples.

cowdiddly's picture

And of all of them AOL should have know better,

I remember after they went down the tubes the first time for screwing over their customers. Me included, billed me for months after I tried to get rid of them. I had to finally shut down my bank account and get a new number. They used to send out stuff like. "Give us another chance".

Another chance yes and this is what you decided to do with the few suckers you have left.

What a joke, I did not even know they were still around. What asshats are running this thing?

It makes me think that most of these places are being funded by the Gov't itself because they are damn sure not worried about profits, truthful reporting, ratings, viewership or circulation.

And now they ALL tried to join forces IN MASS to try to tell you who you should vote for. Then wikileaks links them to the political party of the DNC.

THEY ARE PRAVDA folks and to keep denying that is simply sophomoric.

 Ive seen a single article right Here get more hits than some of their entire programming for the evening but yet they exist as a going concern.

buzzsaw99's picture

talent? don't think so. change aol to lol is more like it.

edit: i've also read a few things from the huffpo, they don't have any talent over there either.

Normalcy Bias's picture

Their talent is their ability to lie, spin, and deceive.

Got The Wrong No's picture

Yahoo is the same. Total DNC kiss asses propaganda news outlet. 

Infield_Fly's picture
Infield_Fly (not verified) Nov 17, 2016 10:29 AM

Dear Snowflakes - YOU'RE FIRED.

 

LMFAO!!!!

 

Soros funding must be in decline.

1980XLS's picture

These Greedy liberals

Always profits over People.

swmnguy's picture

Oh, no!  They fired the people who send out all the AOL install CDs?  I'm going to have to actually buy table coasters now?

Normalcy Bias's picture

...bbbbut...where is America going to go to get the truth?!

DontFollowMyAdviceImaDummy's picture

they actually had a pool of 10,000 employees to layoff 500 from?  i honestly thought they had less-than-100 employees based on the quality of their content

angry_dad's picture

Most of their writers are leased robots used to generate smears, lies, and smut 24/7.

Got The Wrong No's picture

Actually, they lied. The people who partake of the AOL or Huff Poo content wouldn't know what truth was. It's a consistency thing. Their sheep are well trained. 

Safelyundergroundlul's picture

Amazing how many of these 'companies' are even (still) in business. I guess thinning out the herd isn't so bad after all. What a beautiful thing Darwinism is. Long overdue as well. Black hole theory has never been so relevant ;)

djsmps's picture

Realigning synergies to leverage the delta.

F0ster's picture

Perhaps the wankers at HuffPo shouldn't have put the Trump campaign news in the 'entertainment' section. LOL

angry_dad's picture
angry_dad (not verified) Nov 17, 2016 10:32 AM

Viewers and advertisers are sayigng ADIOS to these shill controlled media outlets for good reason;

They are worthless and stupid.

Expect more heads to roll as viewers shun their sites.

Happy New year!

scoutshonor's picture

Ouch, I still get email at SnaZZydancingSHOES1669@aol.com from people that used to be hot.

 

1777's picture

...but...but...why is the FAKE news growing and the REAL news is laying off people???

wisehiney's picture

I am going to sing "God Bless America" at the top of my lungs as I ride my bike later today.

Bill of Rights's picture

It brings a tear ( of joy ) to my eye and a smile to my face seeing these media outlets imploding, reminds me of the Nazi propaganda outlet that went belly up after the war..hmm?

Seasmoke's picture

America On Line. Bank of America. 

 

America sure ain't what it used to be. 

bloostar's picture

I remember AOL.. I never used it back then either. Used to be the first thing one deleted once a magazine cover disk insisted installing that without asking you, together with 'Compuserve'

YourAverageJoe's picture

Propaganda is becoming blasé. Maybe they should learn to do something that's always in fashion: Plumbing.

holgerdanske's picture

Huffington post?

They can huff and they can puff, but they can't post anything of value.

Earlier today I wanted to comment on some complete fool that was writing what to do about the Trump win, if you felt, dejected, lost, depressed etc.

I have never read anything more stupid, to my recollection.

 

No place to tell them, so I tried to report an error, as I believe this advice is much wores than a speeling mistake.

After about 10 captchas (?) to prove I am no robot, I realised they simply just say your captcha is wrong, there is no way you can say anything to them.

They know they are idiots, and they prefer to soldier on without any input from enraged readers.

Complete train of idiots, they should be fired the whole bunch of them.

bamawatson's picture

i like to speel my wores

((after i captcha them))

Iconoclast421's picture

“The layoffs are related to a 2017 strategy where we will add to our business,”

 

Ok... so laying off people = adding to business. Ok. I got it.

Nunyadambizness's picture

It's the new economics of business==>Cut your way to growth!  

adonisdemilo's picture

The problem is that normal folks aren't really interested in our kind of propaganda.

We have too many employees spouting lies, ie. following your directors instructions, so, we have to let you go.

Sorry we couldn't scam the voting public, but we did try, boy, how we tried. 

walküre's picture

Good news first thing this morning! When do we get the Breitbart outlet in Germany? Someone needs to fuck Merkel sideways.

Her government is flying in riff raff rapefugees from Italy and Greece via chartered planes now.

She is already threatening to run again in 2017 and the fucked up reality is that she will win because the "everybody but AfD" coalition of asshat parties will simply make their majority. Green, yellow, red, dark red, black or blue... as long as they don't give any concessions to the AfD.

Austria is better of. They have elections coming up 12/4 where Freedom Party's Hofer will hopefully get his majority. Austria has a stronger chance to get a nationalist government than Germany. Hey, but if Austria shows us the way then we can maybe get it done too? Unlikely though unless we get Trump & Co. to assist. Now that is what I would call a real liberation of Germany!

FUCK THE LIBTARD LEFTS COMMIES ASSHOLES THAT ARE RUNNING THIS COUNTRY IN THE GROUND!

Mariner33's picture

Every media outlet that takes the hysterial mentally deranged extreme positions of Cultural and Social Marxism ends up with thremendous losses.  People just don't want made up shit and pablum for retarded Borg and zombies.  From the Washington Compost, Eunuch Vision, Puffington Toast, The Alphabet Networks-the list goes on and on.  WTF?

I suppose they are kept alive by our wonder Jewish Hedge Fund Owners, who are NWO, Davos Fly-ins, and the virtual Jewish traitorous scum like Buffet Table, Bill Grates, etc.

2ndamendment's picture

The Huffington Post: Where people with completely useless college degrees go to "work". (I am looking at you Womyn's Studies graduate from Berkley!!!)