Verizon cutting about 800 jobs in troubled media business
NEW YORK (AP) — Verizon is cutting about 800 jobs, or 7 percent of its media and advertising employees, as it reorganizes the troubled division.
The wireless company had hoped to create an ad business that could compete with Google and Facebook. It spent roughly $10 billion buying up former Internet pioneers Yahoo and AOL . But Verizon found benefits from integrating those two companies were less than expected. The company slashed the value of its media unit by nearly $5 billion in December.
The new CEO of Verizon's media division, Guru Gowrappan, informed employees of the layoffs in an email Wednesday. He says the division's priorities will now include focusing on mobile and video products and stemming declines with desktop users.