AOL axing 700 jobs in cost-cutting move

NEW YORK: Time Warner Inc's AOL business is cutting up to 700 jobs, or about 10 percent of the Internet unit's work force, in a bid to cut costs.

AOL Chief Executive Randy Falco told employees in a memo Wednesday that AOL plans to cut the jobs in the next several quarters. He also said that AOL will skip merit pay raises in 2009.

AOL has unsuccessfully attempted to shift from being an Internet access provider to an advertising-focused company. Time Warner has been working to split the operations of its access and advertising businesses, a move that could make it easier to sell one or both.