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Source: AOL cuts 90 ad-sales jobs
NEW YORK (Reuters) -- America Online's interactive marketing group cut 90 jobs, about 15 percent of its remaining work force, in a second round of cuts this year aimed at getting the Internet arm of AOL Time Warner Inc. back on track, a source familiar with the situation said this week. An spokesman for AOL, which cut 120 jobs in May from the interactive marketing group that sells online ads to other companies, would not confirm the latest cuts. The group now has about 550 people, the source said. The source said the new cuts affected mostly local advertising sales people and support staff in AOL's Dulles, Virginia headquarters, New York and some smaller markets. Cuts come as new strategy is announcedThe cuts, which come days before new America Online Chief Executive Jon Miller is due to outline to the company's board his strategy, leave the ad-sales group with about 550 people. Miller is trying to help the Internet division weather the slowdown in ad spending and subscriber growth, as well as federal probes into the accounting practices surrounding some of its ad/commerce deals. He is expected to unveil a new strategy, focusing more on programming and interactive services than on advertising, as well as shed light on more cost-cutting efforts at the group. The interactive marketing group's composition has been tinkered with since then and is now led by ad veteran Robert Sherman, who has said he instilled a more flexible attitude concerning pricing and terms. Those were key complaints of former advertisers the group is seeking to woo back. More tweaking possibleA source said there could be more tweaking to the group in coming weeks by Lisa Brown, a former USA Interactive executive hired to develop new forms of marketing and sponsorships, embedding e-commerce into the services. America Online is expected to continue to pursue ad sales in some local markets, albeit with a smaller team, the source said. The revamped America Online is expected to have less focus on advertising and more emphasis on programming and new interactive services, according to industry insiders. Much of America Online's staff, especially its top ranks, has been reshuffled in recent months. Moves aboundLong-time AOL veterans that were close to former Chief Operating Officer Robert Pittman, who resigned this summer, have left, including top ad salesman Myer Berlow and Mayo Stuntz, who oversaw cross-division initiatives. James de Castro, the head of AOL's flagship Internet service which is home to 35 million subscribers, resigned last week, leaving control of the service to Vice Chairman Ted Leonsis, who has become much more involved in recent months. Top dealmaker David Colburn, who oversaw some of the deals that are being investigated by the government, was ousted earlier this year and his business development group has been dissolved and restructured since Miller took over. AOL Time Warner is CNN's parent company. Copyright 2002 Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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