AOL To Cut 500 Jobs To Focus On Video, Mobile Growth

LOS ANGELES (CBSLA.com/AP) — AOL is cutting about 500 jobs, or 8 percent of its workforce, as it trims back following some deals and focuses on mobile, video and data.

In a memo to employees, AOL CEO Tim Armstrong says the Verizon-owned company has added 1,500 employees over the past year because of acquisitions and partnerships, and it needs to consolidate to improve operations.

Armstrong says AOL will add jobs in the areas that are driving growth.

"The layoffs are related to a 2017 strategy where we will add to our business," he said. "These are super-targeted by area, and we will be re-growing, especially in video and mobile."

Verizon bought AOL for $4.4 billion in 2015 as part of its effort to build a digital ad business. AOL owns Huffington Post - which it purchased for $315 million in 2011 - and the tech site TechCrunch.

Verizon has also proposed buying Yahoo for $4.8 billion.

AOL has offices in Los Angeles and Beverly Hills, but it wasn't immediately revealed if those offices would be impacted.

(TM and © Copyright 2016 CBS Local Media, a division of CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2016 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)