AOL will reorganize its business divisions to simplify its structure as it focuses on boosting Internet advertising sales globally, a Reuters report said.
The report, quoting a memorandum sent to employees, said AOL, which in August sketched out a strategy to give away most of its services for free and cease marketing its dial-up Internet access business, planned to eliminate its four business units and create smaller product categories instead.
"We no longer have conflict among multiple business models, wherein the resources and messages designed to support our 'Access' business compete and, in some cases, negate the resources and messages meant to support our 'Audience' business," AOL CEO Jonathan Miller, quoted by Reuters, said.
"Starting last month, our whole company became an 'audience' business," he added.
Four senior executives who reported to vice chairman Ted Leonsis would now report directly to Miller, including executive vice president of video, marketing and portal Kevin Conroy, executive vice president of programming Jim Bankoff and AOL media networks president Mike Kelly, the report said.
Joe Redling, who ran the company's Internet access business, would now be charged with expanding AOL's international business, according to the memo.The company also planned to establish a new reporting unit to expand its business globally, the Reuters report said.