May 17 (Bloomberg) -- Jon Brod, chief executive officer of AOL Inc.’s local-news division Patch, is stepping down from the role and will return to AOL Ventures, the investment arm.
Steve Kalin, Patch’s chief operating officer, will replace Brod, according to an internal memo from AOL CEO Tim Armstrong that was obtained by Bloomberg News. AOL is also cutting 40 of its 1,400 jobs, according to a person with knowledge of the plans who asked not be identified because the matter is still private.
The Patch personnel moves are part of a series of executive changes by Armstrong as he seeks to transform the dial-up Internet company into an advertising-driven content publisher. Earlier this year, he appointed Susan Lyne head of the company’s brand division, which comprises Patch as well as the business operations of TechCrunch and the Huffington Post.
AOL, based in New York, has spent more than $300 million to develop Patch, which generated less than $40 million last year, missing its sales target by about 25 percent, according to Armstrong. Hurricane Sandy affected ad sales in several hundred towns Patch covers.
The executive changes were reported earlier by AllThingsD.
To contact the reporter on this story: Edmund Lee in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Edmund Lee at email@example.com