Verizon admits Yahoo and AOL are failures and cuts over 10,000 jobs | RIP Verizon Media Group?

[AlTech]

ArsTechnica reports that Verizon is admitting that Yahoo and AOL are failures and are cutting over 10,000 jobs.

 

Ultimately this may mean that Oath, Verizon's media business which owns AOL and Yahoo, which is soon to be renamed to "Verizon Media Group" might face some serious issues and challenges.

 

Quote

Verizon is parting ways with 10,400 employees in "a voluntary separation program," despite the Trump administration providing a tax cut and various deregulatory changes that were supposed to increase investment in jobs and broadband networks. The cuts represent nearly seven percent of Verizon's workforce and were announced along with a $4.6 billion charge related to struggles in Verizon's Yahoo/AOL business division.

Verizon described the voluntary buyouts as well as ongoing Yahoo/AOL failures in a Securities and Exchange Commission filing on Tuesday. The buyouts affect "US-based management employees" in multiple business segments, not just Yahoo and AOL.

 

Quote

Verizon's Media business, branded Oath, has experienced increased competitive and market pressures throughout 2018 that have resulted in lower-than-expected revenues and earnings. These pressures are expected to continue and have resulted in a loss of market positioning to our competitors in the digital advertising business. Oath has also achieved lower-than-expected benefits from the integration of the Yahoo Inc. and AOL Inc. businesses.

 

Quote

As a result, Verizon said it "expects to record a non-cash goodwill impairment charge of approximately $4.6 billion ($4.5 billion after-tax) in the fourth quarter of 2018." Verizon previously estimated Oath's goodwill balance at $4.8 billion, so the $4.6 billion charge will wipe out nearly all of Oath's goodwill value.

 

Quote

Verizon, which had 152,300 employees at the end of Q3 2018, offered voluntary buyouts to 44,000 of those employees in September. Verizon said Monday that 10,400 employees are taking the buyout and will get "up to 60 weeks' salary, bonus, and benefits, depending on length of service."

Nearly half of the 10,400 will leave the company this month, and the rest will leave by June 2019. Verizon also said it will "record a severance charge in the range of $1.8 billion to $2.1 billion" in Q4 2018, mostly because of the voluntary buyouts, "but also as a result of other headcount reduction initiatives."

 

The over 10,000 employees who are leaving Verizon have voluntarily been let go and will be compensated.

 

So yeah, I'm not surprised AOL and Yahoo haven't been doing well although Oath also includes Tech Crunch and other websites.

 

What a shame, although I am completely against using browser history to target ads at users.

[RogueLizard]

Good riddance

[Heesleemer]

I still have a yahoo email haha

[captain_to_fire]

9 minutes ago, AluminiumTech said:

AOL

You’ve got mail 

 

 

[lewdicrous]

15 minutes ago, AluminiumTech said:

The over 10,000 employees who are leaving Verizon have voluntarily been let go and will be compensated.

Either working for Verizon sucks or the compensation is too juicy to let go

[jasonvp]

17 minutes ago, lewdicrous said:

Either working for Verizon sucks or the compensation is too juicy to let go

VZ's severances are quite tasty.  Gal I know that worked for AOL for years was laid off this past summer; after being told she had one year to go.  So in other words: she was told in June, 2017 her job would be done in June, 2018.  Sent away with 1 year's(!) severance.

 

Annnnnd right into another job two months later.

[Drak3]

It took them this long to figure it out. Wow.

[Taf the Ghost]

Verizon admits what everyone has known in tech for a decade.

[Taf the Ghost]

3 minutes ago, Drak3 said:

It took them this long to figure it out. Wow.

Probably not. Both have a lot of IP that are useful for other Verizon businesses, but the actual companies have been so badly run for so long that there is little left to salvage from their actual projects. 

[The Benjamins]

55 minutes ago, lewdicrous said:

Either working for Verizon sucks or the compensation is too juicy to let go

I don't think you know what voluntary means.

 

Resing now with 6 months of severance pay or get laid off in a few months with no severance. You are LUCKY to get the offer to leave early, and should take it unless you are 150% sure you will not get laid off.

 

Note: numbers was made up as a example.

[PlayStation 2]

They learned nothing by analyzing what happened when Time Warner bought AOL? Like when they sold Warner Music Group because of the losses?

[Nup]

Jesus that’s a huge amount of people 

[jasonvp]

28 minutes ago, handymanshandle said:

They learned nothing by analyzing what happened when Time Warner bought AOL? 

Funny.  It was AOL that bought Time Warner, not the other way around, but your point is still somewhat valid.  I was at AOL when it happened, and it was an unmitigated disaster from the word, "Go."  Every one of us pee-ons knew that it wouldn't work because of the severe culture clash and vastly different business models.  But the high-flying execs sitting in Dulles, VA (aka: Steve Case and Bob Pitman) were drooling over the thought of "owning" a massive media company like Time Warner.

 

Ha!

 

Not... so much.  The downward spiral began the moment the pen was lifted off the paper.  As a sign TW wasn't very happy with it, they sent every, single AOL employee a nice little gift bag.  It had "The Matrix" in it.  On VHS.  Sorta as a massive "FUCK YOU!" to us.  Looking back at it, I actually give them props for that one.

 

VZ's move for AOL several years ago was due to a specific video advertising tech AOL was working on.  I know one of the developers of said tech, and when VZ gobbled the company up, he and his co-workers were all brought into a conference room.  There, a rep from VZ told them all something to the effect of, "Don't worry about any news of severances or job cuts.  You guys are why we're here!"  And it was followed up with MASSIVE raises, stock, etc.  My friend was quite blown away and very $happy$, if you catch my drift.

 

The Yahoo thing was more of the same: advertising, advertising, advertising.  Trying to mush the two companies together wasn't going to work (ignore the VZ overlord part).  Simply from an East Coast/West Coast perspective, the two companies weren't going to meld very well.  And: no surprise they didn't.  Lots of bickering, lots of in-fighting, lots of turf wars, etc.

 

I saw the same thing when I was at AOL and we engulfed Netscape.  It didn't go so well for the Netscape folks; their work ethic and thought processes were entirely different from ours.  While I'm generalizing, the simple observation I made was that they were too worried about slipping out of the office to go enjoy the lovely weather in California vs busting their asses to get work done.   Which we did, in spades, here in Virginia.

 

Culture clash.  You can't sledgehammer two different companies together and expect a win; it doesn't work that way.  VZ should have known better.

 

[Johnny4990]

Isn't Engadget a part of Oath? 

[jasonvp]

2 hours ago, AluminiumTech said:

ArsTechnica reports that Verizon is admitting that Yahoo and AOL are failures and are cutting over 10,000 jobs.

Just for clarification's sake, Ars is incorrect.  This "10K buyout" is the same one that was offered a few months ago.  And it's all folks at Verizon, not AOL or Yahoo (formerly: Oath).  They're finally executing on the buy-out now, which is why this may be making news.  Even though it isn't.

[Guest]

[AlTech]

32 minutes ago, Johnny4990 said:

Isn't Engadget a part of Oath? 

Apparently yes.

 

[DVA]

YAHOO

 

[Noctus]

1 hour ago, DVA said:

YAHOO

 

Dunno why, but i just love that haha

 

Must remind me of younger times when life wasnt so shit =/

If only msn messenger survived /shedstear

[DVA]

3 minutes ago, Noctus said:

Dunno why, but i just love that haha

 

Must remind me of younger times when life wasnt so shit =/

If only msn messenger survived /shedstear

I remember seeing this on TV as a child as well... 

I might make this my text ringtone lol

[jasonvp]

Just now, DVA said:

I remember seeing this on TV as a child as well... 

Christ you guys are young'ns!

[Noctus]

4 hours ago, jasonvp said:

Christ you guys are young'ns!

Whoa there, Grandpa 

[jasonvp]

1 minute ago, Noctus said:

Whoa there, Grandpa 

Get off my lawn!

[Lurick]

Just now, Noctus said:

Whoa there, Grandpa 

Back in my day we listened to banishes screeching to access the intertubes and we saw boobies one pixel at a time and that's the way we liked it, and if your momma picked up the phone your downloads was done!

[Noctus]

Just now, Lurick said:

Back in my day we listened to banishes screeching to access the intertubes and we saw boobies one pixel at a time and that's the way we liked it, and if your momma picked up the phone your downloads was done!

Umm, so did i lol. Just so happened those AOL adverts were on TV aswel