PCMag editors select and review products independently. If you buy through affiliate links, we may earn commissions, which help support our testing.

Report: AOL's AIM Division Hit Hard by Job Cuts

 & Leslie Horn Reporter

Our team tests, rates, and reviews more than 1,500 products each year to help you make better buying decisions and get more from technology.

Our Expert
LOOK INSIDE PC LABS HOW WE TEST
65 EXPERTS
43 YEARS
41,500+ REVIEWS

Is this the beginning of the end for AOL Instant Messenger? The New York Times is reporting that AOL is cutting more than 100 employees across the board, most of whom are in the AIM division.

AOL reps did not immediately respond to questions from PCMag, but confirmed the layoffs to the Times.

"We are making some strategic but very difficult changes to better align our resources with key areas of growth for us as a company," AOL said in a statement. "We remain committed to our presence in Silicon Valley and driving innovation in consumer products and mobile."

An anonymous former AOL employee told the Times that AIM has been pared down to just support staff, and that the majority of the West Coast tech team has been eliminated.

Among those confirmed to be leaving is Jason Shellen, the West Coast vice president of AOL messenger products. All Things D, which first reported the news, said Eric van Miltenburg, senior vice president of AOL business operations, will also depart.

According to the Times, cuts have been made at AIM to maximize profits. Citing two employees familiar with operations at AIM, the paper said that section of AOL generates about $50 million in annual revenue. Prior to layoffs, operating costs for the Instant Messenger division were at about half that, and the ultimate goal is to slim costs down to about $2 million or $3 million a year while generating $20 million more in profits.

AOL hasn't totally neglected AIM. In fact, it overhauled the client in November and added a new iPhone app.

The Times said cuts are also expected at Patch.com, AOL's local news site.

About Our Expert

Leslie Horn

Leslie Horn

Reporter

Leslie Horn joined the PCMag team as a news reporter in the fall of 2010. She covered a wide range of topics, from digital media to the latest Apple rumor. After graduating with a degree in Magazine Journalism from the University of Missouri, she wrote for Out & About, a travel guide in coastal Maine. One of her favorite reporting experiences was covering the 2008 Olympics from Beijing. She travels every chance she gets; a favorite trip was backpacking along the coast of Brazil. Though she was born and raised in Dallas, Texas, Leslie embraces life as a New Yorker.

Read full bio