Starting in September, AOL will be offering free 5GB of storage at XDrive. Previously this was $10/month, but with AOL’s new ad-supported model it will be free.

The new service announced by AOL provides accessibility from PCs or mobile devices. User tools enable drag and drop functionality for moving items between the system and the storage service, and can schedule of automatic backup of files and folders or the auto-upload of email attachments to Xdrive.

In other news AOL announced they will be laying off 5,000 workers, or about a quarter of their global workforce. And by “global workforce” they mean in the U.S. But really, that’s only one worker per MB, not bad.