2000 Jobs Are Lost at AOL

October 15th, 2007 at 12:00 am
 


America Online

AOL CEO Randy Falco wrote a lengthy letter to his colleagues about terminating about 2000 jobs. Basically it goes, Hi and hello then a bit of a recap of the past year, then more about AOL’s vision, then more about AOL’s ads, AOL’s products one by one from AOL.com to food, money finance, TMZ, Moviefone to Mapquest, then back to AOL and AOL globalization then more about business then about streamlining and firing 2000 people, then a little more about AOL.

All in all there were 14 paragraphs , quite long and boring to read, the first 9 were about AOL, then 10 was about firing 2000 people and 11th was about transition, then back to AOL til the 14th.

From the eyes of the AOL employee who’s getting fired, it’s probably a lot of bullcrap to read. To the eyes of analysts it is clear that AOL is tredding in dangerous waters in perspective to the Bubble burst.

Also it makes us question the capability of AOL to compete against giants like Microsoft, Google and Yahoo.

Back to the employees getting laid off, it’s hard to imagine that a company as big as AOL and seemingly stable and profitable has to lay off 20% of its work force in the name of globalization. Wasn’t there a time when globalization meant more jobs? Well, like Om Malik says, "a Black Monday out in AOL-land" today.