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AOL has laid off a bunch of employees who worked on its instant messaging service, AIM, to try and save about $20 million a year.Nick Bilton at the New York Times says a former employee told him the AIM group has been “eviscerated” and is now just support staff.
Apparently AIM has about $50 million in sales, but costs $25 million a year to run. AOL wants to get costs down to no more than $3 million a year.
Earlier today, Tim Armstrong said that most of the people who have been laid off from AOL recently were “not performing.”