AOL, Inc. (AOL) To Lay Off Hundreds Of Patch Employees
Earlier this week, we reported that AOL, Inc. (NYSE:AOL) hit revenues of $541.3 million for the quarter. However, the company’s brand group reported a loss of $1.4 million. Patch.com, one of those brand groups, will be laying off as many as 550 employees on Friday. Hundreds of websites in the network will also be shut-down. Patch.com is AOL’s hyper-local news division.
Several Patch websites may be able to find local partners. According to AOL subsidiary, TechCrunch.com, around 300 Patch websites will be shut down. The layoffs will impact sales, management, and editorial employees at the Patch.com division.
There is only one segment in AOL’s larger business that has positive adjusted operating income, which is the Membership Group. That is because of AOL’s dial-up services.
The writing was on the wall for Patch.com for a long time now. Patch.com’s CEO Jon Brod left to join AOL Ventures in May 2013 and back then we wrote about how Patch.com will be laying off around 3% of their 1,400 employee count. AOL bought Patch.com for $7 million in 2009.