Quote from Mozillazine "...AOL has cut or will cut the remaining team working on Mozilla in a mass firing and are dismantling what was left of Netscape...". Original article here.
Definitely a sad ending for a company that revolutionalized the industry and effectively help bring the Internet/WWW into the mainstream.
Reminds me of when I read about the rise and fall of Netscape in "The Silicon Boys, and their Valley of Dreams". Quite an interesting and insightful read, especially the targetting of Netscape by it's primary competitor.
Also found this, a diary of people who've left Netscape and where they are now!