AOL to cut more than 100 jobs at Reston headquarters

AOL is moving to lay off more than 100 employees at its Reston location in Northern Virginia, marking another chapter in the company’s shrinking presence. The former internet giant will cut a total of 108 workers associated with the office at 11955 Democracy Drive in Reston Town Center by the end of May, according to notices sent to state and local officials.

As reported by the Washington Business Journal, the layoffs are set to occur in two phases, with the first batch of around 94 employees being let go on March 1 and the remaining 14 on May 31. The notices informed the affected employees of their separation dates and stated that these layoffs would be permanent, with the possibility of further job losses in the future.

The downsizing at AOL comes after its sale from Yahoo to Italian tech company Bending Spoons. The deal, which was announced in October and finalized on Jan. 2, is part of Bending Spoons’ strategy to acquire existing digital businesses. The company, headquartered in Milan, has set its sights on high-profile platforms like AOL, Vimeo, and Eventbrite.

A Bending Spoons spokesperson confirmed the layoffs but declined to provide additional details out of respect for the privacy of those affected. The decision to downsize follows a comprehensive assessment of AOL’s operations within the new organizational structure under Bending Spoons.

Despite the layoffs, Bending Spoons expressed confidence in AOL’s future growth potential, emphasizing plans to streamline operations for enhanced product development. The company is committed to meeting the needs of its customer base with improved focus and efficiency.

Affected employees have been offered separation packages that exceed industry standards to support them during the transition period. While specifics are not provided to protect the departing employees’ privacy, Bending Spoons reaffirmed its commitment to leveraging AOL’s team and resources for future growth and product improvement.

AOL, once known for its dial-up service, continues to operate as a web browser and email provider with approximately 8 million daily users post-acquisition. Its workforce experienced significant growth throughout the 1990s, peaking at around 3,500 employees across the country by 1996. The company announced plans to relocate its headquarters from Tysons to Ashburn in the same year, driving the development of data centers in Loudoun County.

Following the emergence of broadband technology and a challenging merger with Time Warner, AOL’s decline was accelerated, leading to the shift of its headquarters to New York City in 2007. Despite the move, the company maintained a presence in Loudoun until selling off its properties, marking a transition into a new era focused on digital business acquisitions and growth opportunities.