Pinkslips abound at AOL unit

Dulles office to shed about 1,200 jobs

AOL Time Warner’s America Online unit Tuesday announced 1,700 layoffs as part of a restructuring to more tightly integrate its online brands and web properties.

The revamp calls for the Dulles, Va.-based AOL to shed about 1,200 positions, with another 500 jobs cut at the company’s Sun-Netscape Alliance. As a result, parent AOL Time Warner will take a charge of $100-$125 million in the current third quarter.

Upcoming layoffs at AOL have been rumored for weeks. The number was on the high side, however, as reports had put job cuts at anywhere from several hundred to 1,000. Parent AOL Time Warner laid off 2,400 employees across all divisions earlier this after its merger closed.

The revamp, aimed at streamlining AOL and exploiting synergies with its parent, include:

  • Creating a new AOL Interactive Services Group with Jonathan Sacks as prexy;

  • Consolidating AOL’s brands, like Netscape, CompuServe, Moviefone and MapQuest, into a new AOL Web Properties Group with Jim Bankoff as prexy;

  • Creating a new Vertical Markets Group as part of AOL Interactive Services, with Donn Davis as prexy.

Getting the various pieces of its wide-ranging empire to work, and earn, together has become a guiding principle at AOL Time Warner. Last Friday, the company announced the creation of an AOL Time Warner Global Marketing Solutions Group.

Hit by a slow economy and advertising market, the conglom is also hard pressed to cut costs and boost revenue in order to meet Wall Street’s financial expectations.

AOL said in June its membership topped 30 million.

AOL Time Warner shares fell 0.77% to $39.90.

More Biz

  • Bert Salke and Jennifer Salke

    Feds Looked Into Amazon Studios Chief Jennifer Salke in College Admissions Scandal

    Federal investigators looked into Amazon Studios chief Jennifer Salke and her husband, Fox 21 Television Studios president Bert Salke, as they conducted a sprawling probe of cheating in elite college admissions, a source close to the case told Variety. It does not appear, however, that prosecutors will charge the Salkes in the case. The Salkes [...]

  • Variety Cord Cutting Placeholder Cable

    Big Blackout Looms as CBS, AT&T Go Down to Wire on Renewal Talks

    A blackout affecting CBS stations in major markets throughout the country looms as CBS and AT&T executives go down to the wire on negotiations for a retransmission consent deal covering 28 O&O stations. The sides have sparred publicly during the past few days as 11 p.m. PT Friday expiration of the previous contract approached. AT&T [...]

  • Contract Placeholder Business WGA ATA Agent

    ICM Responds to WGA Packaging Lawsuit: Claims are 'Baseless' and 'Absurd'

    ICM Partners has asked a judge to dismiss the lawsuit filed against four major talent agencies by the Writers Guild of America as part of the larger war between agencies and the guild over packaging fees on TV series and movies. The guild sued ICM, CAA, WME and UTA in California state court in April, [...]

  • New York City NYC Placeholder

    CityFM Podcast Takes a Deep Look at New York’s Music Scene (Listen)

    First among the many projects listed at the beginning of New York Music Month in June was a WNYE radio show and podcast called CityFM that promised to “explore the city’s music culture, emerging artists and trends, and upcoming events told through the lens of what’s happening around the city in Summer 2019.” And while [...]

  • Live Nation Logo. (PRNewsFoto/Live Nation)

    Live Nation Confirms Placing Tickets Directly on Secondary Market at Artists’ Request

    Representatives for Live Nation, the world’s largest live-entertainment company and owner of Ticketmaster, confirmed that it bypassed conventional channels and directly placed thousands of concert tickets on the secondary market upon artists’ request, in an article published in Billboard. In a statement shared with Variety, the company acknowledged that it has facilitated the transfer of [...]

  • Costume designer Michele Clapton

    Costume Designers Fashion a Plan to Fight for Pay Parity in Upcoming Contract Talks

    The Costume Designers Guild Local 892 is gearing up to fight for pay equity in its 2021 contract negotiations with the Alliance of Motion Picture and Television Producers, establishing a pay-equity committee to raise awareness of the scale disparity between the mostly female CDG membership and the mostly male membership of the Art Directors Guild Local [...]

More From Our Brands

Access exclusive content