Former AOL employees recall past layoffs as more loom
Time Warner merger saw more than five waves of layoffs at AOL in the past decade
AOL employees are at another crossroads this week.
The company announced last month that it would be looking for 2,500 employees - one third of its workforce - to voluntarily join a layoff program Dec. 4-11. If the targeted number is not reached, the company will proceed with involuntary layoffs. It is unknown how many of the 2,400 employees in Dulles will opt into the program or be subsequently laid off.
AOL officially split from Time Warner Inc. Dec. 9, ending a tumultuous merger that began in January 2001. The merger saw more than five waves of layoffs at AOL in the past decade.
AOL spokeswoman Tricia Primrose did not respond to requests for details on the upcoming round of layoffs. However, AOL's termination processes are streamlined, according to former employees who went through layoffs in previous rounds.
In 1999, "Sue," a former corporate executive who did not wish to be named, had a feeling she was going to be let go. So, the morning she was laid off after two years at AOL, she wore a tuxedo to work, because, she said, "If I'm gonna have something like this happen to me, I'm gonna look important."
Sure enough, her door badge didn't work and she couldn't access her e-mail. She and the other employees laid off that day - she's guessing close to 1,000 - were told to visit an office location in Reston for more information on their severance packages. There, they were given assistance on their resumes and 30 days to find another position within the company. Otherwise, they were laid off.
AOL severance packages are paid in one lump sum and are determined by title, not tenure. Health benefits are fully paid and last the duration of the severance package, but 401K benefits end upon termination, said "Sean," a former vice president who does not wish to be named. Sean served at AOL for 10 years before being laid off in 2006.
The former employees guessed that executives could receive between six and 12 months of severance by opting into the voluntary programs. That number would be smaller if they were laid off.
May Helen Darden, a senior-level assistant in Dulles for more than 10 years, switched departments multiple times due to downsizing. She evaded a layoff until March 2009 when she was let go along with her boss, Gio Hunt, the former senior vice president of new business ventures at AOL.
"I was crying out the door," Darden said.
Most employees are let go that day and must return their work keys, access badge and cell phone and are asked to clean out their work space. A common indicator between AOL employees of whether a co-worker is gone is if they disappear off their contact list on AOL's instant messenger system and never sign on again.
Sue said it was "very upsetting" to see talented employees in the same boat as she was in. Sean said he was shocked. Darden said she hated leaving AOL.
It remains unknown how many of the Dulles-based employees will voluntarily opt into the layoff program ending Dec. 11. It is also unknown how many will be subsequently laid off in Dulles. As part of the announcement, AOL's chief executive officer, Tim Armstrong, said he is foregoing his 2009 bonus.
As AOL sheds its weight, it's looking to the future. It will adopt its new logo -- Aol. - Dec. 10.
Former employees said they'd like to see the headquarters return to Dulles. Former employees frequently stay in touch and network together. Darden found her new job through a former AOL colleague. They all say they'd work at AOL again if offered the chance.
"You felt like you were making a difference in how people communicated," Sue said.
It's a "hometown company that treated me very well, and I'll always love them for that," Sean said. He feels as though former AOL employees have earned "a degree of respect that is very heartening ... it's a badge of honor around here."
Note: Upon leaving AOL, all employees must sign a confidentiality agreement with the company that they will not discuss the terms of the departure. Therefore, sources in this article are kept anonymous at their request.
AOL's tumultuous past
At its height, AOL had 33 million paid subscribers and 20,000 employees worldwide - 4,000 at its Dulles headquarters. AOL moved its headquarters to New York City in April 2008. Now, AOL serves only 4.5 million customers and its 2,400 Dulles employees are again facing the ax this week.
AOL's distress started after its merger with Time Warner was completed in January 2001.
It struggled to keep up with technological advances in the communications market. Its dial-up Internet modems became obsolete and it hesitated before switching to broadband, according to "Sean," a former vice president who served at AOL for 10 years. AOL also charged for its services long after its competitors started offering free-service Internet. In turn, customers left AOL in droves.
"AOL never shook the image that it had of being the Internet on training wheels," said Sean.
The hemorrhaging of clients led to initial layoffs at call centers and customer service centers.
The merger with Time Warner didn't abate AOL's problems.
"It was one of those things that looked great on paper, but it was a failure in practice," Sean said.
In a move to rebrand itself in the future, AOL unveiled its new logo - Aol. - Dec. 10.



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