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| Tim Armstrong |
AOL Inc.is eliminating about 500 positions at its struggling
Patch local-news business, or close to half of the division’s more than 1,000
employees, according to a person with knowledge of the decision.
According to Bloomberg, about 350 people will lose their
jobs Friday, and roughly 150 will be asked to stay for 60 more days as the
company seeks partners for some of the 900 Patch sites, said the person, who
asked not to be identified because the matter is confidential. Chief Executive
Officer Tim Armstrong, who apologized this week for firing a staff member in
front of colleagues, announced the job cuts this morning to Patch workers.
Armstrong, who has said he aims to make Patch profitable by
the end of the year, told the staff last week that 400 sites would close down
or look for partners, such as other local-news publishers.
Patch, which covers school-board meetings, local businesses
and other neighborhood stories, has been a costly part of AOL’s strategy to
transform the dial-up provider into an advertising-driven content publisher.
The company has spent more than $300 million developing the sites, which serve
communities and neighborhoods across the country.
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