America Online, which has been trying to turn its fortunes around as users leave the service for broadband connections, plans to cut about 700 jobs next month, or 5 percent of its U.S. work force, in a bid to meet financial targets, a person familiar with the matter said Tuesday.
The source, who spoke on condition of anonymity, said the job cuts would occur mainly in northern Virginia, where the online service is based. News of the cuts was reported earlier in The Washington Post.
Jim Whitney, an AOL spokesman, declined to comment.
Word of the job cuts came one day before AOL's parent company, the giant media conglomerate Time Warner, reports earnings for its third quarter. AOL is expected to be a key topic for investors, including its efforts to seek new kinds of revenues as its dial-up users migrate to high-speed Internet connections.