AOL To Slash 500 Jobs At Patch

by ·

Share


AOL Inc. (NYSE: AOL) announced on Friday that it will slash 500 jobs at Patch, which represents nearly half of the total workforce at its local news site division.

As a part of its broader restructuring program, the New York-based media company is also shutting or merging about 150 of the 900 news sites it currently runs. These news sites compete with local dailies to attract online readers as well advertising budgets from local businesses.

In a company statement, AOL’s Chief Executive, Tim Armstrong said, “Patch’s strategy will be to focus resources against core sites and partner in towns that need additional resources.”

“Unfortunately, with these changes we are announcing today, we will be reducing a substantial number of Patch positions,” added Armstrong.

The downsizing of the staff was expected. Earlier on August 9, Armstrong while addressing a meeting warned AOL’s employees that reduction in the workforce was imminent. He also asked employees to voluntarily leave the Company if they were not in favor of this move.

Earlier this month, Armstrong also fired Patch’s CEO Steven Kalin and creative director Abel Lenz. Lenz was found filming the company’s meeting. Lenz was fired on the spot by Armstrong, which shocked everyone present at the meeting. Subsequently, Armstrong issued an apology for his abrasive behavior.

Patch was co-founded by Armstrong in 2007 under the assumption that users will be keen to know news stories and developments around their neighborhoods.

 








More Posts by this author

edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

Tags:

Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.