De Castro Steps Down as AOL Programming Chief

The management shakeup at AOL Time Warner Inc.’s Internet unit continued Tuesday as executive James de Castro -- hired just seven months ago to lead America Online’s interactive services -- announced his resignation after being passed over for the top spot at the Dulles, Va.-based unit.

De Castro, 48, was hired by former AOL Time Warner Chief Operating Officer Robert Pittman to handle the programming and content for AOL’s online service, including its latest version, AOL 8.0.

He had hoped to take over leadership duties for the entire online unit after Pittman departed under pressure in July. But the post instead went to outsider Jonathan Miller, former head of USA Interactive.

De Castro said he would look for a job as chief executive at another company.

“With the completion of [the 8.0] launch, Jon Miller’s arrival and the restructuring of the management team, I’m now looking for an opportunity to run a company,” he said.

During his short tenure, de Castro developed a loyal following inside AOL. He was known for leading 8 a.m. spin-cycling classes at the company’s headquarters.

“Jimmy infused the whole place with new energy,” Miller said.

His duties will be taken over by AOL veteran Ted Leonsis, who is resuming a more active role at the company as vice chairman of the Dulles division.

There are no plans to replace de Castro, officials said.

De Castro’s departure comes three weeks before Miller plans to unveil a turnaround plan for investors. The Dec. 3 analysts meeting in New York will include details about how AOL plans to shift its customers from dial-up connections to high-speed broadband access.

The online company, a unit of New York-based AOL Time Warner, has been rocked this year by management changes, a slowdown in growth and a series of accounting problems that are now the subject of a federal criminal investigation.

AOL Time Warner’s shares rose 11 cents to $15.06 on the New York Stock Exchange.