AOL CEO Tim Armstrong has hired consultants Alix Partners to help him decide who to fire during the company’s up-coming re-structuring, a source close to the company tells us.
Alix is helping AOL (TWX) with a “top to bottom” look at the company in terms of “process efficiencies, cost structure, and strategy.”
The consulting firm’s last big client was General Motors’s debtors.
(For that gig, Alix wanted to charge $38 million for its first 90 days of work. The government objected.)
Despite rumours to the contrary, Alix hasn’t yet come up with an exact number of people AOL will have to layoff to survive as its own company. It’s a “multi-month project” and “not an imminent thing,” says a source.
Our maths says the number will be about 2,000, with AOL needing to save about $300 million per year.
Here’s how Alix pitches its corporate re-structuring services on its Web site:
In the current climate, dramatic corporate change is becoming the rule, rather than the exception. And in the face of this transformation, our senior advisors provide battle-tested techniques, as well as the expertise and leadership necessary to facilitate a successful turnaround.
In fact, we pioneered many of today’s most effective turnaround strategies. In so doing, we earned a reputation for building consensus, managing expectations, driving the process and delivering results. With skill sets designed specifically to address troubled situations, our professionals are extremely qualified and exceedingly ready to address every issue that surrounds a restructuring environment.
We attack problems, not people. With a true sense of urgency and a bias toward action, we focus on quick decisions and sustainable progress. We develop realistic business plans with fallback strategies, and stabilise key relationships with vendors, banks and labour. We’re able to manage multiple demands and information requests from outside constituents, and become an extension of the management team.
As financial advisors to management, we stabilise the company financially, manage cash, generate liquidity, negotiate with creditors, develop restructuring strategies, negotiate debt restructuring and assume the role of Chief Restructuring Officer.
As operational advisors to management, we stabilise the company operationally, manage inventory and stop the bleeding. We restructure key functions, identify the platform for the future, and create vision and consensus with stakeholders.