Apparently AOL has felt the loss of dial-up customers more than we were allowed to know, and the ‘new’ revenue model from a couple of years ago when free access to the portal was granted, has not worked out so well.
Today, AOL announced that 2000 workers would soon be laid off, which amounts to 20% of the workforce there. CEO Randy Falco noted that some of the employees added in the last months have been due to acquisitions that the company has made, and so the net loss is smaller that otherwise indicated. The laid off employees will be receiving a generous severance package, it is said.
The CEO, when asked what might be ahead for the company, stated that the vision is for AOL to be the largest advertising network worldwide. This is hardly the vision of founder Steve Case.
Much of what will happen to AOL is undecided, as the stockholders at Time-Warner are pushing for some sort of resolution of the situation. As far as they are concerned, money doesn’t wait for anyone.
[tags] AOL, Time-Warner, Randy Falco, Steve Case, advertising network [/tags]