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AOL Cutting 2000 Additional Jobs

butterwise writes "AOL plans to cut 2,000 jobs, or 20 percent of its worldwide workforce, as the Internet division focuses on advertising sales to make up for subscriber losses. 'The latest cuts will pare AOL's staff to 8,000, down from about 18,000 employees in 2001, when the company bought New-York based Time Warner for $124 billion. The combination led to $100 billion in losses and a more than 60 percent drop in Time Warner's stock as customers dropped dial-up Web access.'"

33 of 139 comments (clear)

  1. Obligatory: by oahazmatt · · Score: 4, Funny

    Boss to Employees: "Goodbye".

    There, now it's out of the way.

    --
    Those who believe the Internet is private,
    find their privates are on the Internet.
    1. Re:Obligatory: by eln · · Score: 5, Funny

      You've got a pink slip!

      For more information, go to AOL Keyword: Unemployment

    2. Re:Obligatory: by TheGeneration · · Score: 2, Insightful

      I had a friend who worked for AOL. He had bad story after bad story. Apparently their biggest problem is that the execs in Virginia are in an AOL only universe and have no idea that Silicon Valley (not Virginia) sets the pace for the internet.

      I'm willing to bet every single person they lay off is a regular employee and not the management responsible for turning a one-time good service (circa 1996) into a cluster f*ck of bad UI design and pop-up ads.

      I recently used a 6 month free trial that came with my computer and only logged in twice in six months. It was so awful. Their core competency is their chat, yet it's antiquated and difficult to use. Instead of spending money on making their cheat more usable for the users they instead spent on "channels" and other "value" features that really have zero value to anybody but advertisers desperate to reach mindless idiots.

      In the end when I called to cancel my free trial at the end of the six months they converted me to a "free account." I still haven't logged in, even free AOL doesn't provide a value proposition that is worth accepting their free services. That's how bad their UI has gotten.

      Ultimately the responsibility for this cluster f*ck lays with the CEO of Time Warner. Long ago he should have fired all of the Virginia staff and opened more offices in the ultra competitive and internet-centric Silicon Valley. Out in Virginia they miss out on the buzz of what's new and coming, they miss out on the general savy of the entire software engineering and web design community in Silicon Valley. In Virginia the pool of GOOD web designers and engineers must be tiny.

      --


      The Generation
      I'd say something witty here, but I'm not that bright.
    3. Re:Obligatory: by cHiphead · · Score: 3, Interesting

      I used to work at AOL. I agree with every part except the last part. Time Warner related execs should've all been f'ing fired for letting AOL "buy" them with a merger of overvalued stock options in the first place. AOL had its chance to turn things completely around but the pointy hairs in charge wouldn't listen one bit to reason or common sense, the p-o-s aol 'client' was too precious to do away with due to its perceived 'value' to the marketing and advertising data mining. Ah the sweet irony of their crash and burn, just took a few years longer than expected.

      Frankly, Silicon Valley can go f*ck itself as far as the rest of us geeks with (somewhat) affordable housing is concerned. ;)

      I wish Google would just buy AOL out already, it'd be a real fire sale in terms of the value of the user correlated data mining.

      Cheers.

      --

      This is my sig. There are many like it, but this one is mine.
  2. I feel sorry for the canned individuals by davebarnes · · Score: 2

    But, I don't feel sorry for AOL.
    So easy to hate them for their horrible business practices.
    May they disappear into dust.

    --
    Dave Barnes 9 breweries within walking distance of my house
    1. Re:I feel sorry for the canned individuals by nwbvt · · Score: 2, Insightful

      "I feel sorry for the canned individuals"

      Don't. I'm not trying to sound mean, but there is really no reason to feel sorry for them. They get 2 months of severance pay and get to get out before things really get bad (read, bankruptcy). Plus now that they are no longer working for AOL, maybe their neighbors will be willing to befriend them again. They are the lucky ones.

      --
      Mathematics is made of 50 percent formulas, 50 percent proofs, and 50 percent imagination.
  3. Re:People still use AOL? by moore.dustin · · Score: 4, Insightful

    They do not know any better, it is as simple as that really. They either do now know other options exist, think the service is the same, or for many they are to lazy to break their ties with AOL thinking they will lose their email, aim, and other things AOL gives them.

    I have asked numerous people why they still have AOL over the years and almost all of them said that they have had it for so long that they are uncomfortable changing for whatever reason. AOL does a great job locking its customers into its systems and making it seem counter-intuitive to switch.

  4. Happy now? by Scottoest · · Score: 5, Funny

    I blame this on all of you Slashdotters. For years you just HAD to casually point out how crummy their service is, and how morally repugnant their business practices are, and now look at what has happened!

    Have you no morals? Will you not rest, until every poor person working for an underwhelming ISP has lost their job?

    For shame, Slashdot!

    - Scott

  5. AOL and TW Merged by RajivSLK · · Score: 4, Insightful

    AOL didn't buy Time Warner, they merged in what was widely consider one of the blunders of the "dot com era". A blunder for TW that is. It is also considered one the smartest things AOL CEO Steve Case ever did. Many people believe that he pulled the wool of Time Warner's eyes.

    http://en.wikipedia.org/wiki/Time_Warner

    1. Re:AOL and TW Merged by Anonymous Coward · · Score: 4, Informative

      If you read the link you gave, you will come across the following:

      "In 2000, a new company called AOL Time Warner was created when AOL purchased Time Warner for US$164bn."

    2. Re:AOL and TW Merged by Chris_Stankowitz · · Score: 3, Informative

      According to the Wiki you linked they were bought, but it was done in a merger fashion.

      "In 2000, a new company called AOL Time Warner was created when AOL purchased Time Warner for US$164bn.[3] The deal, announced on 10 January 2000[4] and officially filed on 11 February 2000,[5] employed a merger structure in which each original company merged into a newly created entity."

    3. Re:AOL and TW Merged by StikyPad · · Score: 4, Funny

      He said "pull the wool of their eyes." It's like the strings of their heart, only softer and with a higher risk of retinal damage.

    4. Re:AOL and TW Merged by eln · · Score: 2, Insightful

      Case took his overinflated stock and bought a huge media company with it, and got himself a very nice golden parachute right before the bottom fell out of the tech sector. I don't expect to see him washing windshields on a street corner any time soon.

      AOL was a dialup company struggling to find its way in a world that was rapidly moving to broadband. The company's future was not nearly as bright as its past, and its stock would have plummeted even worse had it not managed to pick up a giant old media property before everything went to hell. Time Warner didn't kill AOL, it was already dying before TW got there. I think AOL's management recognized this, but TW's management didn't see it until it was too late, and they're the ones that got stuck trying to save a company that was circling the drain.

    5. Re:AOL and TW Merged by StikyPad · · Score: 2, Insightful

      I actually had AOL for two reasons. 1) Chat rooms and mail forwarding was faster and easier than usenet, finding FTP dumps, inane IRC rooms, and other "1337" activities. There were no really good news readers (and really still aren't, but fortunately there are decent web interfaces), FTPs would max out and/or go down faster than a Catholic schoolgirl at homecoming, and nobody wanted to DCC to a dialup connection. 2) Back when games required a healthy suspension of disbelief and a metric sh.. well.. a lot of imagination, there was Air Warrior, Legends of Kesmai, and Aliens Online. Of course when Kesmai opened up gamestorm.com, I dropped AOL faster than Angelina dropped pounds.

      Before that I had an affair with GEnie, and before that the precursor to AOL: Q-LINK. I still remember downloading SID files because my parents wouldn't let me listen to the "secular" radio.

      Unfortunately for AOL, there's not much of anything they can provide these days that the web can't do better, faster, and cheaper (to the end user at least) except, perhaps, to provide compatibility and stability issues (though IE is a close second). Multiplayer online games have long since ceased to be the domain of services with pay-per-hour play time, and the lockdown on chatrooms, e-mail, etc. alienated far more people than it enticed. Unless they can pull an Apple in revitalizing their image and creating a new business model, it seems unlikely that they will continue to exist for any significant amount of time.

  6. TW are Idiots and they Killed AOL. by Erris · · Score: 4, Insightful

    The death of dial up did not have to be the death of AOL. TW had all sorts of content it could have sold as a subscription to it's user base before they lost it all. Now they are scrambling and suing their fans to keep their media empire alive. More savvy competitors are cutting into their sales via the internet with no base at all. They expect the treats to draw customers.

    --
    DMCA, Hollings, Palladium. What might have sounded like paranoia is now common sense.
  7. Actually slightly surprised by damn_registrars · · Score: 3, Interesting

    more than 60 percent drop in Time Warner's stock as customers dropped dial-up Web access.

    Am I the only person surprised to see this? Considering AOL used to be the top ISP in the country (IIRC), and now the cable companies are instead (like Time Warner), I would have expected that AOL-TimeWarner would have broken even on the deal. Or maybe even come out ahead, considering how much more they can charge for high speed cable modem access, with presumably an easier network to maintain than the phone network that is otherwise beyond their control.

    I don't think there was any great exodus of AOL customers switching to satellite for internet service or anything...
    --
    Damn_registrars has no butt-hole. Damn_registrars has no use for a butt-hole.
  8. You've Gone Pale! by stabbycabby · · Score: 5, Funny

    AOL Keyword: Inevitable

  9. AOL - a Web 2.0 company! by Animats · · Score: 4, Interesting

    AOL just needs to promote itself as a "Web 2.0" company. They are, after all. Social networking? Definitely, they were there at the beginning. User-contributed content? Yes, they have that. Interactive client? Yes, AOL has that too. Mashups on the home page? Yes! Mobile phone capable? Of course. They even had virtual worlds with avatars, back in their Q-Link days.

  10. Re:People still use AOL? by vux984 · · Score: 4, Insightful


    I have asked numerous people why they still have AOL over the years and almost all of them said that they have had it for so long that they are uncomfortable changing for whatever reason. AOL does a great job locking its customers into its systems and making it seem counter-intuitive to switch.

    don't blame AOL for customers being 'comfortable'.

    That's the same reason most people give for using Eudora or Pegasus mail clients. Its not that these companies/products have 'locked customers in' or made it counter intuitive to switch, its simply that people have gotten comfortable, and they don't perceive enough value in changing.

    (Not that there is anything wrong with Eudora or Pegasus. But most people using it aren't "choosing to use it", its simply the case that they've used it for so long its just what they use, it works, and they don't want any hassles.)

  11. Re:People still use AOL? by BiggyP · · Score: 4, Interesting

    Yep, people still use AOL for the same reasons that people still use Windows, they'd terrified of change, for these poor souls their entire experience of the Internet is just what AOL and it's massively bloated software suite has presented them with. Hopefully these users will feel suitably alienated and outraged by change in upcoming versions of the AOL software that they'll consider a move to something less proprietary and start to experience the internet the same way everyone else does.

    Oddly enough, even when it's quite blatantly obvious, AOL users are often hesitant to blame the AOL browser and crapware for dreadful system performance and are happy to pay through the nose for bandwidth upgrades that they never see any benefit from...

  12. Re:AIM by ravenspear · · Score: 2, Informative

    The AIM network is run by AOL, although it is separate from their dialup subscriber network. Even if they go under it's unlikely this would be shut down though, too many users and ad revenue. It would most likely be restructured or sold to another party. Even if it did shut down, everyone would just switch to msn or yahoo.

  13. Re:People still use AOL? by Rycross · · Score: 2, Informative

    Their software wasn't just bloated, it was terribly buggy as well. Around 2001, I had a job at a help desk at a university. Sometimes we had people come in who had installed AOL's software on their Windows PC (usually 98 se), and then tried to connect to the university dial-up. The AOL software somehow managed to screw up something with Window's networking. Sometimes we had to do a reinstall of the networking components just to get things to work correctly again, even if they had already uninstalled all the AOL stuff.

  14. Re:Here's to hoping they eliminate the other 80% by Waffle+Iron · · Score: 5, Funny

    AOHell should never have existed.

    That's not true at all. At one time, they provided a crucial service to the PC users in this great nation: a boundless supply of free floppy disks, conveniently delivered almost daily right to our homes and offices. It was only with the demise of the floppy drive that AOL's reason for existence went away.

  15. Re:People still use AOL? by peragrin · · Score: 4, Funny

    My boss does. $20 bucks a month we get charged just so she can use the "internet" as she likes too.

    When she got a new computer running windows XP, I made sure to "install AOL". In reality I set AOL.com as her IE 7 home page, changed the shortcut icon and name, and locked down bits and pieces of the browser the best I could. Installing the abomination that is AIM completes the illusion. she has had a hard time adapting to the "new"AOL but accepts it as is.

    We do still pay $20 bucks a month for AOL though. I can't seem to break that one out. At least the book keeper is helping me.

    --
    i thought once I was found, but it was only a dream.
  16. AOL should have called it a day already by GnarlyDoug · · Score: 3, Interesting
    There is a problem with organizations. They seek to perpetuate themselves long after their purpose has been met. In AOL's case they made a metric a**-ton of money in the early days of the internet. Now, instead of distributing all that money and selling off divisions when the business model no longer was very viable and sending everybody home rich, they blew it all on trying to buy a new lease on life with Time-Warner.

    This idea that once an organization or business has been created that it should try to exist for the rest of eternity is stupid. Folding before you have uselessly expended all of your capital when you no longer have a viable business model and you are not structured in a manner that allows you to change business models (very hard to do), is not only smart, but it is a fudiciary duty. Throwing all that money away on a long-shot gamble to simply continue existing is silly.

  17. The bubble burst 7 years ago... by bigdaddy25fb · · Score: 3, Insightful

    And we are still feeling repercussions from the burst...

  18. Re:People still use AOL? by Anonymous Coward · · Score: 4, Insightful

    Because you can't take your aol email account with you. We need email address portability! Gah thinking about that as an idea makes my head wanna plode.

  19. If only losing your job at AOL... by themushroom · · Score: 2, Funny

    ...were as hard as quitting your account with AOL.

    Employees would get another three months of employment rather than terminated immediately.

  20. They're totally screwed... by nick_davison · · Score: 5, Funny

    AOL's trained its employees too well.

    Boss: You're fired!

    Employee: Sorry, AOL employees only accept termination notices between the hours of 1:13am and 1:16am, Ugandan time. Please call back at this deliberately inconvenient time. Until then, we will continue to bill you for our services.

    Boss [several hours later]: OK, now you're fired!

    Employee: Sorry, please hold.

    Boss [several hours later]: Look, you're freaking fired!

    Employee: OK, I'm going to sign you up for one more month of free employment.

    Boss: I don't want a month's free employment, you're freaking fired, you stupid cretins!

    Employee: I'm sorry, we accidentally disconnected that call. Please begin the process again.

    Management may want to fire them. If the employees have learned anything from their time working there, it'll be next to impossible to make them actually leave. Karma's a bitch.

  21. Re:People still use AOL? by Amouth · · Score: 4, Informative

    hummmm Eudora supports Imap.. he could jsut use that to connect to exchange and then move his messges into the imap storage via Eudora and then open up outlook.. not that hard.. (i assume you have exchange sence he is wanting to move to outlook)

    --
    '...if only "Jumping to a Conclusion" was an event in the Olympics.'
  22. Re:People still use AOL? by westlake · · Score: 4, Insightful
    don't blame AOL for customers being 'comfortable'.

    AOL was among the first to profit from the discovery that the future of online services didn't lie with the Geek - and with a half-dozen or more arcane clients for the BBS, FTP, TELNET, USENET, IRC chat, etc.

    AOL pioneered flat monthly rates, automatic updates. There were perfectly intelligible reasons why users became comfortable with dial-up AOL and why they remain comfortable with portals like Yahoo now.

  23. Re:Here's to hoping they eliminate the other 80% by archen · · Score: 2, Interesting

    Heh, they had cool CD cases for a while too. I think I still have the tin ones. I got a weird wooden one from my boss who didn't want it. So I use that to carry around my "action pack" CDs to unfuck people's computers. The look on peoples faces when I bring out that case is priceless: "Dude I asked you to fix my computer. You're going to fix my computer with AOL 9.0?"

  24. Re:fun times tomorrow by ScrewMaster · · Score: 2, Interesting

    Back in 1985 or so, I worked for a software house (video games and educational software, as it happened) and due to a number of factors which can be conveniently lumped under "bad management", they had to institute massive layoffs. "Black Monday" we called it. No warning, no hint of anything to come ... just "there'll be a meeting at 9:00." As we were heading towards the meeting room, our manager pulled me and another programmer aside and said, "Not you two. See me after the meeting." So we went back to our desks and waited, figuring that we were about to get fired or something. Whatever it was, it couldn't be good. But next thing you know, another one of the guys I'd worked with came back from the meeting. Didn't say a word, just made a motion like he was swinging an axe.

    In one swell foop, they killed off at least four fifths of the staff: programming, art and animation support, quality assurance, sales, marketing ... all gone. For my part, I was expected to not only continue my current projects, but to also take over the work of half a dozen others. "You have to work 100 hours a week! We have commitments!" I was told. I pointed out that they should have thought of that before they laid off everybody. I lasted another six months ... couldn't take the pressure. One week I worked straight through from Monday morning to Friday afternoon (I went home for an occasional shower and came right back) and my supervisor told me that if I got the product into QC by Friday I could take the next Monday off. So I did, and the bastard tried to renege on the deal. I took it off anyway: being fired didn't seem so bad right about then. As it happened, when I showed up for work the following Tuesday all he said was, "How was your day off?"

    I did notice, however, that not a single manager was let go, even though we really didn't need them anymore (ha, nobody to manage.) More to the point, those were the very people that ran the company into the ground. Yet it was the rest of us, the folks that actually created and sold the company's products, who paid the price for their incompetence. Typical, I suppose, but it explains why American businesses seem to be so full of fools and nitwits nowadays.

    One late night, me and the other programmer who was kept snuck into the CEO's office, just to see what it was like on the other side. It was unbelievable: very well-appointed, shall we say, On top of that, through a door in the back we found a complete private sauna and jacuzzi! Wasn't like it was his company: he was just hired by the parent corporation to run the place. Spent money like water though.

    Last I heard, they'd moved to California and were selling Activision game cartridges.

    --
    The higher the technology, the sharper that two-edged sword.