AOL is restructuring. The company’s first order of business is laying off 500 employees, or 5% of its staff.
Moving forward, says CEO Tim Armstrong, new resources will be shifted toward mobile, video, and data offerings. AOL added 1,500 employees to its workforce this year through deals and acquisitions. There’s also Yahoo, which is now owned by Verizon, AOL’s parent. If they are to integrate efficiently in the future, some overlap must be removed.
“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,” Armstrong wrote in a memo to employees. “Mobile, video, and data are the key growth drivers of that strategy and the company will be putting resources into each of these areas.”