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Back in November we talked about AOL’s need to trim their headcount by some 2,500 people . At the time the hope was that enough would walk away from their positions to avert the need for playing the bad guy and actually firing anyone. Well, according to All Things Digital the numbers didn’t quite add up with that plan and now AOL needs to start the proactive force reduction. Call it what you will. Here is some information from the ATD article In November, AOL CEO Tim Armstrong said he needed 2,500 “volunteers” to give up their jobs, but not enough of them got the message — only 1,100 walked away on their own. Now Armstrong is entering the second phase of his corporate slimdown, and is firing some 1,000+ employees. AOL officials say the company has begun notifying European employees of its plans to shut down many of its offices there, and has started tapping some American workers as well. The bulk of the US layoffs are slated for this Wednesday, the company says. This is a very sad story indeed. While we keep hearing forced words of hope and encouragement that “things have turned around” we get crap unemployment numbers in December and news like this from one of the industries that is supposedly “doing well”. Let’s be honest, you need to simply count your blessings if you are in a pocket of performance no matter what industry you call home and the online space is no different. To underline just how different this world is the following was noted in the article written by Peter Kafka. The company hasn’t released a breakdown of cuts by territory or by department. But I’m told that the company’s editorial/content production staff, which Armstrong and his lieutenants have been emphasizing as a priority in recent months, will not remain untouched. This just means that the outsourcing of content production is likely the way that AOL will go more and more. Pure speculation on my part but if your strategy moving forward is creating more and more content then taking away part of that internal team just means it’s likely cheaper to outsource. The full release can be found at ATD but the closing remarks are as follows. We will be offering packages to impacted employees in the U.S. that will include severance, benefits and outplacement assistance, among other things. All of our cost alignment work is about ensuring AOL’s sustainability and future success. Project Everest is the completion of phase one of AOL’s turnaround. Interesting how they name something like this as if it were a military undertaking and the curious use of a mountain’s name that few have conquered and many more have failed to climb. Pilgrim’s Partners: SponsoredReviews.com – Bloggers earn cash, Advertisers build buzz!

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AOL Employees to Be “Involuntarily Laid Off”

While I just read this over at All Things Digital I am still scratching my head (which means I am typing with just one hand, so if this reads slow you’ll know why). AOL tends to be in the news in the past year or so more about whether the business will survive and how will it look when it is pushed out of the Time Warner nest officially in December. Why today would be any different I don’t know but the news from AOL is how they are asking for 2,500, or one third of their work force, to volunteer for a layoff. AOL, which has already told investors that it will spend up to $200 million firing a good chunk of its staff, has now told its employees. It is looking for “up to 2,500 volunteers,” CEO Tim Armstrong told his staff today. That’s a third of the company’s payroll. The voluntary layoff program begins on December 4, a few days before the company spins off from Time Warner (TWX). If the company doesn’t get enough volunteers, it will axe people on its own. Ok, so in this crappy job market you are asking someone to either volunteer to move on or just wait and see if they will be told to move on. What I didn’t see was what would make that kind of move better than rolling the dice and hoping that you don’t get axed? In other words, if there is any doubt in an AOL employee’s mind as to whether they would survive this what is the advantage of volunteering. Is there monetary incentive? I’m a little baffled. Of course, if you look at it from the business side this is the kind of news investors like to hear. In a gesture of “I’m suffering too” Tim Armstrong is not taking his bonus in the neighborhood of $1.5 million due him this year. All of the cynics in the crowd can chime in on that one I am sure. I have no comment but here is Armstrong’s take. “As a member of our team and the person who takes accountability for the results of the company, I am making the decision to forego my 2009 bonus. That decision is a personal one and is not a sign for the future payout of the overall bonus plan for employees.” So what about AOL as an Internet business? What about what this will look like moving forward? With ICQ on the block and MapQuest as well what is AOL going to be offering the market place when it is asked to stand alone other than 2,500 more folks with AOL on their resume when looking for work? It might be interesting to hear from the MP crowd as to what their view of AOL is in the Internet marketing space as we approach this new phase in the company’s history. Let’s hear it.

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AOL Asking 2,500 Employees to Fall on Their Sword