AOL has contacted key advertiser and agency clients in an effort to reassure them about an ongoing restructure which has seen the firm fire hundreds of ad sales employees.
Last week, it was reported that AOL was cutting around 150 roles in the US, as well as consolidating its portfolio of technology news websites, as part of a shift towards programmatic advertising.
During an earnings call on Friday (30 January), AOL chief executive Tim Armstrong warned that the company will “simplify everything that can be simplified” over the coming months.
It is understood that, as the company looks to create a two-pronged offering based on both programmatic media and premium brand solutions, those ad sales staff operating “in the middle” are the ones to have lost their jobs.
Now Bob Lord, global CEO of AOL Platforms, has written a memo to key clients to reassure them that, although the changes may feel “uncomfortable”, the transition has been instigated to better support their business objectives.
The memo, seen by Business Insider, states: “I am pleased to share that after working over the past several months to ensure our organisation is tightly connected with market needs, we have developed a new multidisciplinary team structure that aligns to your business and will help you navigate industry disruption more proactively and holistically.
“I realise that this change may mean a shift in the core AOL team on your business and that may initially feel uncomfortable; however, please know that your needs are at the heart of this transformation. We are undergoing this transition to be better equipped to support your unique business objectives from end to end.”
AOL would not comment on the memo.
Last year, AOL reported an 18% rise in its global ad revenues, thanks to a 37% surge in programmatic revenues.