America Online Announces New Organization to Integrate Netscape

Posted on March 24, 1999

America Online Inc. has announced a new organization to integrate Netscape's operations and build on the strengths of the Netscape brand. America Online said it will commit its full resources to maximizing Netscape's talent and technologies across the entire Company to extend its industry leadership and, through its strategic alliance with Sun Microsystems, Inc., will take e-commerce to the next level of success.

The Company said it will organize into four Product Groups: The Interactive Services Group, focused on its branded interactive services; the Interactive Properties Group, built around branded properties that operate across multiple services or platforms; the Netscape Enterprise Group, which will continue to serve Netscape's enterprise customers and contribute to America Online's part of the e-commerce alliance with Sun; and the AOL International Group, overseeing AOL and CompuServe operations outside of the U.S.

Each of these Product Groups will report to Bob Pittman, President and Chief Operating Officer of America Online, and both America Online and Netscape executives have been named to key management positions within these groups. Netscape-branded operations will remain based in Mountain View, Calif.

As part of its integration of Netscape, the Company said job redundancies and its new organizational structure will lead to reductions of 350 to 500 positions at Netscape and approximately the same number across America Online's other operations, out of a total workforce of about 12,000 people. America Online said it plans to take a charge in its fiscal 1999 third quarter for the integration of Netscape and the reorganization of the Company.