Another move by AOL to undermine Netscape
C|Net | at | by Mike
America Online on Tuesday said it has laid off 50 employees involved in Web browser development at its Netscape subsidiary amid a reorganization of its Mozilla open-source browser team.
The layoffs mark the latest setback for AOL subsidiary Netscape Communications, which has fought an increasingly lopsided battle with Microsoft for browser market share. Microsoft's Internet Explorer is currently used by more than 90 percent of Web surfers, according to site visitor statistics published by Google.
Netscape suffered its latest blow at the hands of its parent last month, in a sweeping deal with Microsoft guaranteeing that AOL would offer Internet Explorer as the default browser to subscribers to its proprietary online service for the next seven years.
"If Netscape pulls back, does anyone notice?" IDC analyst Jonathan Gaw said. "These guys have been losing market share for years."