AOL hasn’t exactly been doing good recently and the company had been contemplating cutting down on some of its businesses for a while now. The ax has finally fallen on the music division and AOL has announced that it is shutting down the entire divison.
Although AOL’s music division has managed to stay afloat until now, the new Brand Group CEO, Susan Lyne, has decided to let go of it. This may turn out to be a wise decision in the long-run, given the fact that online music audience is increasingly drawn to more recent alternatives such as Spotify.
The rather unfortunate part is that AOL music employees had no clue of the decision until the company announced it. As soon as the announcement was made at the HR meeting, AOL Music employees started venting out on social media. One such employee tweeted, “Well, we all just got laid off. AOL Music is finished. Sitting in an HR meeting right now, trying to negotiate keeping our computers for a few more days.”
Lyne, who has recently gained the helm of AOL, plans to reshape the company and make it more profitable. To this end, she plans on relaunching other entertainment services from AOL’s platform and slash down on the older offerings which are no longer any popular. While AOL Music is the first to be cut off, we can expect other similar decisions in the coming days.