AOL cutting 40 more jobs

AOL Inc (AOL) is firing as many as 40 people in the group that includes its AOL Instant Messenger service, while executives Eric van Miltenburg and Jason Shellen depart, three people with knowledge of the matter said.

David Tempkin, who now runs the mobile group, will become head of the consumer applications division, which includes mobile, AIM, e-mail and about.me, an online profile application, said the people, who asked not to be identified because the changes haven't been announced. He replaces van Miltenburg, they said. Shellen was head of AIM, the instant messaging service.

AOL, based in New York, has 5,660 employees and is trimming costs amid declining sales. AIM's staff cuts are related to the division's underperformance, the people said. AOL, led by Chief Executive Officer Tim Armstrong, could eliminate more staff in other departments, these people said.