Tag Archive for Layoffs

Santa Laid-Off in NY

RecessionThe global depression recession economic event has now effected Santa Claus. Yahoo News reports that when faced with balancing the budget in New York‘s Suffolk County the politicians decided to layoff Santa Claus.

Santa ClausThe Suffolk County executive said he could not justify spending $660 of his $2.7 billion budget to pay Santa according to Yahoo. David McKell, 83, a World War II veteran and former homicide detective has donned his Santa suit for the last ten years to greet children on Long Island.

Steve Levy, the Republican County Executive’s answer to laying off Santa was, “Let either the private sector come forward with a donation, or, better yet, let’s tap the volunteers in the community.”

GrinchLevy was quickly called a Grinch by his opponents. “Do we really have to hold Santa Claus hostage to balance the budget?” Bill Lindsay, a Democrat and the presiding officer of the county legislature told Yahoo.

“I mean, $600? Give me a break,” Joseph Sawicki, a Republican who as county comptroller is charged with overseeing the county government’s fiscal prudence, said in an interview. “There comes a point where you go overboard in terms of penny-pinching.”

 

AOL Notes

AOL was once the leader in online service providers in the U.S.and around the world. In 1988 America Online (AOL) came alive and legendary CEO Stave Case took charge in 1991. During 1996, AOL reached six million subscribers and that fall they started offering flat-rate monthly service fee of $19.95.  In January of 2000, AOL decided to buy up Time Warner Inc. and was spun out again in 2009.

AOL Wasn’t Building Great Products

AOLA report from the BusinessInsider says that AOL (AOL) wants to refurbish its brand and boost its energy out west. They cite a Bloomberg BusinessWeek story, that AOL is attempting rebuild its brand by:

* Re-painting its West Coast HQ.
* Opening a gym downstairs.
* Inviting startups to work at the office rent-free.
* Hiring 80 new engineers.
* Throwing ex-AOLers under the bus.

“AOL wasn’t building great products, and the brand was reflecting that,” says AOL West Coast boss Brad Garlinghouse. “We have to expunge the ghosts of AOL and start fresh.”

AOL To Buy GDGT? The Rumors Are Back

GDGTThe BusinessInsider speculates now that the top two editors for AOL’s (AOL) powerhouse gadget site Engadget headed out the door, lots of people think the next thing AOL will do is buy GDGT, the gadget-oriented social network started by Engadget alumni Peter Rojas and Ryan Block.

Through AOL Ventures, AOL already owns a piece of the startup. The buy would probably be one of those “acqui-hires” where GDGT investors are made whole and the founders get what amounts to a signing bonus. comScore tells BusinessInsider that GDGT has been fluctuating between 60,000 and 140,000 unique visitors over the past year.

An AOL/Engadget insider tells BI “that gdgt rumor comes and goes.”

Update: GDGT cofounder Peter Rojas says, “I can’t comment either way, you know the drill.”

AOL Has Had Layoffs For 11 Straight Years

America Online (AOL) laid off around 900 people on 03 march 2011 and undoubtedly, it was brutal for those people, and for their friends at the online provider. Unfortunately layoffs are a long-standing tradition at AOL . Chart of the Day plots the job butchers toll of 11 years of AOL layoffs. Sometimes the layoffs are big, sometimes they’re small, but they’re pretty much endless.

AOL Layoffs

 

AOL Spent More Than $300 million on Distributing Free sign-up CDs

AOLAmerica Online (AOL) used to be king of the dial-up hill. At its peak, over 26.7 million households accessed the Internet via AOL, a figure that no American ISP has ever surpassed according to a report from AOL’s own DownloadSquad. That success came at a cost, though: those CDs (and floppy disks!) that arrived in your letterbox, often on a weekly basis, cost AOL over $300 million.

The data comes from Quora, a service that is fast becoming the go-to place for juicy, ‘insider’ information. Someone asked about AOL’s distribution costs, and in mere moments, both the CEO-at-the-time, Steve Case, and the former Chief Marketing Officer, Jan Brandt, had chimed in with authoritative responses. Case recalls, that in the heyday of the mid-1990s, AOL was quite content to spend $35 on obtaining a new subscriber. Brandt, responding a bit later, provided a total cost of “over $300 million,” for the distribution of the CDs. She went on to offer a shocking statistic: “At one point, 50% of the CDs produced worldwide had an AOL logo on it.” Shocking, but… sadly rather believable.

Why AOL Was So Desperate to Hook Up With Huffington Post

AOLWhen America Online’s (AOL) CEO Tim Armstrong announced the $315-million acquisition of The Huffington Post he made the deal sound like a strategic add-on for the former web portal’s content business however, GigaOm says that AOL had to buy Huffington Post. GigaOm says that AOL traffic has been plummeting and losses increasing at most of its major media properties. GigaOm’s Mathew Ingram cites an Advertising Age report that unique visitors in February 2011 was down by more than 40 percent compared with the same month a year ago.

AOL has tried to reinvent itself as a content company, using the cash its Internet access business continues to produce (which I wrote about here) to buy assets like TechCrunch and video service 5Min Media, and The Huffington Post. GigaOm reports AOL has also spent $100 million on building out its Patch.com hyper-local news operation with another $120 million this year. GigaOm’s Ingram says AOL is feverishly trying to build new businesses that can replace the ones that are disintegrating, before the cash from its legacy businesses runs out and the company collapses.

Assets like DailyFinance and PoliticsDaily were supposed to be part of the recipe for boosting traffic and advertising but that doesn’t seem to be happening. Mr. Armstrong is quoted in Paid Content that the news and finance sites were losing $20 million a year for the company and advertising revenue reportedly dropped by almost 30 percent in the latest quarter.

At The Huffington Post, meanwhile, both traffic and revenues have climbed. Mr. Ingram concludes that the HuffPost acquisition brings two things to AOL that it desperately needs: an understanding of how much social networks and social features matter to new media, and a sense of personality and brand awareness that AOL sites have failed to generate. Now all Arianna Huffington has to do is somehow graft all of that into AOL.

Tech Still Laying Off

recessionIt has been just over a year since Wall $treet and the Bankers lead the global economy to the edge of collapse. Thanks to Obama-money our money Wall $treet and the Bankers are making million dollar bonus’s again, so all must be right in the economy right?

According to my information, nearly 550,000 tech related jobs have been eliminated since October 2008. January 2009 saw almost 164,000 jobs eliminated by the biggest names in tech. Ericsson. Google, IBM, Intel, Microsoft, NEC and Sprint-Nextel all eliminated 5,000 or more jobs in January 2009. While this is old news, unless you are still trying to live through one of these “right-sizing” it is also important because we are coming back around to the lay-off season.

glayoffs

This year’s lay-off season is trending upward after several months of decline. From a record high in January tech layoffs declined to a modest 4,336 layoffs in June 2009. Since reaching that bottom the tech layoff rate has increased to levels not seen since May 2009. August 2009 had almost 5,000 layoffs. The number of layoffs in September doubled to 10,246. The trend has been increasing since with 12,704 layoffs in October and in the first half of November, there have been already been 12,749 layoffs. Some opf the same firms that had “resource reduction actions” in January hade laid off more people in November, including Ericsson (700), Microsoft (800) and Sprint-Nextel (2,500).

lastq

It appears to me that despite Wall $treet bonus’s. the rest of us are still in for at leat 12 more months of questionable job prospects

Global Tech Layoffs Pass Half a Million

recessionThe global body count in the tech sector has risen above 500,000 in July 2009. Since the correction, recession, economic melt-down started in earnest in October 2008, approximately 505,477 tech related jobs have been right-sized, down-sized, resource actions eliminated. January 2009 is the worst month for employees with nearly 164,000 tech jobs eliminated. October 2008 saw over 56,000 workers pink-slipped. Approximately 53,500 tech workers we laid-off in both December 2008 and February 2009. The last two months have shown a decline in the numbers of tech workers getting the axe. During June 2009, 4,326 workers were laid off, the smallest monthly count since the economic melt-down started. July 2009 witnessed 12,65 layoffs, most from Verizon. The July count is also well below the average 50,000 lay-offs a month pace being set during the economic meltdown.

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These numbers say to me that we are still in for a long hard year before the anything like a real turn-around emerges. So despite what Newsweek says, the recession is not over.

Among the firms that generated these layoffs are:

Tech Layoffs Continue to Mount

Tech Layoffs Continue to Mount351,202 families’ lives have been disrupted in the tech sector since October 2008, when the banks lead us into the current depression recession economic downturn.  32,820 lay-offs have been announced in the tech sector during March 2009. The tech layoff leaders for March 2009 are:

The March total is the lowest since the depression recession economic downturn started.

  • February 2009 = 48,064
  • January 2009 = 150,014
  • December 2008 = 36,278
  • October 2008 = 50,204

This does not include the chaos that the President Obama’s abandonment of the working class, by sending GM and Chrysler into likely bankruptcy. We are seeing the further dismemberment of the middle class as Chrysler has outsourced its IT to India’s  Tata Consultancy Services in “a multi-year contract” worth about $120 million.

Chrysler’s remaining 2,100- person information technology department, mostly in Auburn Hills, MI will immediately lose 200 salaried technology workers. The balance of the layoffs will come from the ranks of contract workers in that department. They will leave in greater numbers, but Jan Bertsch Chrysler vice president and chief information officer didn’t offer specifics in the Detroit News article. Some employees may be hired by Tata or Computer Sciences, she said, and some work will be moved entirely off-site. According to the media, Tata will provide support, maintenance and services that “will encompass a portion of the functional areas within Chrysler, such as Sales and Marketing and Shared Services.”