AOL's AIM Reportedly Killed
Conflicting reports over recent staff cuts to AOL's Instant Messenger have some speculating it’s the beginning of the end of AIM.
(Image Source: SlashGear )
BY SAMANTHA KUBOTA
ANCHOR LAUREN ZIMA
Employees at AOL certainly are not saying LOL. The New York Times reports 40 employees at west coast offices have been laid off within the past week and more cuts are on the way. But reports are conflicting — so is this AIM Armageddon?
SlashGear reports AIM is being slashed entirely -- with no further upgrades to the software.
Similary, CNET says …“ The Internet pioneer effectively gutted the unit Friday ...” and points out ... “ ... AOL reportedly rakes in $50 million in revenue annually off AIM, but nearly half of that goes to keeping the unit running.”
But AOL is refuting the reports. Computerworld writes …
“Despite a report today [Wednesday] that AOL is killing off its popular instant messaging service, the company says that's not true.”
The digital rumor mill has been churning for a while now, with whispers of layoffs at AOL for the past few weeks making the rounds of tech cubicles. All Things Digital reported last week AOL would be announcing these layoffs, and noted AOL’s new focus.
“... The New York-based Internet company … has struggled to turn itself around in recent years under CEO Tim Armstrong. The company is now facing a challenge from an activist shareholder, one of the reasons for a renewed focus on cost-cutting and other restructuring.”
And are more reports of cuts to come? That original New York Times article predicts:
“Next up, AOL is expected to cut employees who work at Patch.com, the company’s effort in hyperlocal news. Other cuts are expected in smaller doses around the company over the next month.”