AOL to Reorganize
AOL plans to undergo a massive internal restructuring, both to realign its business units to reflect its new focus on advertising and to create a nimbler organization, according to a company-wide internal memo from Jonathan Miller, AOL's chairman and CEO.
The last major organizational changes for AOL came in November 2004, when it carved out four business units: Access, Audience, Digital Services, and AOL Europe. Those divisions are no longer relevant to AOL's new business, according to Miller.
"It is my belief that this structure served us well but no longer reflects what we are doing. Starting last month, our whole company became an 'audience' business," Miller said in the memo. "Moreover, our international aspirations go far beyond Europe, as important as that market is for us. Therefore, the four large business units that defined us for the past two years will be replaced by smaller, nimbler product groups with more authority and greater accountability."
AOL plans to give greater autonomy to its product groups, as well as demand more accountability from them. Product leaders will become more like general managers, responsible for product technology and development, quality assurance, business development and distribution, and product adoption.
The moves follow the announcement by vice chairman and architect of AOL's revival Ted Leonsis would step down from day-to-day duties next year. Several of the execs that formerly reported to Leonsis will now report to Miller, some with significant changes to their responsibilities and shape of their teams.
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