AOL preparing for turnaround, Sony laying off people
AOL is completing layoffs that will reduce its workforce to 2/3 of the original size. In doing so AOL says i’ts preparing itself for a transformation to a different type of company.
“The company is eying both an expansion and a new home in Silicon Valley, in hopes of tapping the area for expertise and inspiration. Garlinghouse said local employees should increase to 350 from 200 by the end of the year.
“Citigroup ‘s Mark Mahaney says AOL has turnaround potential, but that it faces several near-term challenges. Through a newly established venture-capital arm, Garlinghouse said AOL also plans to invest in up to eight promising, early-stage start-ups over the same period. via AOL looks to Silicon Valley for inspiration – MarketWatch.
Sony is facing its own demons and says that online piracy is forcing them to layoff 450 people this week.
Sony Pictures Entertainment is feeling the pinch of online piracy and the decline of DVD sales. The movie studio announced on Monday that it will lay off 450 employees, or 6.5 percent of its workforce, and also plans to close 100 open positions. It will start handing out pink slips in March. The layoffs are in addition to an earlier round of cuts last year of 250 people and 100 open spots, bringing the studio’s workforce down to about 6300 from about 7000 before the financial crisis. via Sony to Layoff 450 Workers as DVD Sales Fall – CNBC.
