AOL Lays Off 20 Percent of Its Workforce
In a memo titled "AOL's Next Step," company CEO Tim Armstrong called this a "critical step on the comeback trail for AOL," adding that they're "creating a next generation hyper-local, national, and global media company." We're not sure exactly what that is, but investors will have to trust that Armstrong and company know what they're doing, and where they're headed.
You could literally wallpaper a room with all the trial CDs AOL used to give out (Image Credit: monkerino)
AOL once ruled the dial-up scene, but that was a long time ago. Since then, users have flocked to broadband services, leaving their AOL accounts behind. Believe it or not, the dial-up business reportedly still accounts for 40 percent of AOL's revenue with 2 million U.S. subscribers. That isn't the future, however, and Armstrong reckons that number will drop by 25-29 percent a year from now.
"The Huffington Post deal for us really was about trying to transition the company to be more of a digital media company," Armstrong said.
Going forward, the Huffington Post is being combined with AOL's existing media properties to create what it's calling the Huffington Post Media Group, with Arianna Huffington leading the charge.