America Online 2009 Annual Report Download - page 17

Table of Contents
Marketing
We believe the most effective type of marketing in the near term will be our ability to deliver compelling content and relevant products and services to
the millions of consumers who visit us each day. On December 10, 2009, we launched a new AOL brand identity to the world. We intend to seek
opportunities to integrate AOL into high impact events, select targeted promotions and partnerships with complementary brands that will add meaningful
growth to our audience base and in our premium content offerings and communications tools.
Employees
As of December 31, 2009, we employed approximately 6,700 people, based in 19 countries around the world, including the United States, India, the
United Kingdom, Germany, Ireland, Israel, France and Canada. At that time, the country outside of the United States where we had the largest employee
population was India, with over 1,000 employees. We are in the midst of a significant restructuring initiative which began late in 2009 and we expect to
reduce our total workforce by nearly one-third in connection with this restructuring initiative, prior to hiring of new employees in areas of strategic focus. In
addition, we plan to reduce our cost base in the United Kingdom and cease or reduce operations in a number of other countries. A significant number of our
international employees support our domestic operations. In general, we consider our relationship with employees to be good.
Global Presence
As of December 31, 2009, we had AOL-branded and co-branded portals and websites in North and South America, Europe and the Asia Pacific region.
We offer Internet access service under the AOL-brand in the United States and Canada and have advertising operations in the United States, Canada and
Europe, as well as in Japan through a joint venture with Mitsui & Co., Ltd. As part of our recent restructuring initiative to better align our organizational
structure and costs with our strategy, we plan to reduce our cost base in the United Kingdom and cease or reduce operations in a number of other countries.
Specifically, we plan to significantly reduce our presence in Europe by reducing our operations in France and Germany and ceasing operations in a number of
other countries. In certain of these countries, we are currently consulting with employees or employee representatives in accordance with applicable legal
requirements. For geographic area data for the years ended December 31, 2009, 2008 and 2007, see "Note 1: Description of Business, Basis of Presentation
and Summary of Significant Accounting Policies" in our accompanying consolidated financial statements.
Seasonality
In the fourth quarter, we have historically seen a sequential increase in advertising revenues associated with holiday advertising; however, this
fluctuation can be offset by adverse economic conditions. Additionally, in the first quarter we have historically seen a sequential increase in average monthly
churn of domestic AOL-brand access subscribers (the number of subscribers that terminate or cancel our services, factoring in new and reactivated
subscribers).
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