The cuts could total up to "several hundred" employees, the source said, and will occur this month. The source would not say which divisions within the Dulles, Va.-based AOL unit will be affected. AOL employs about 16,000 people.
AOL Time Warner set financial targets of $40 billion in revenue and $11 billion in earnings before interest, taxes, depreciation and amortization. Wall Street, however, has become less confident that AOL Time Warner will meet the target after the company reported lower-than-expected revenue last quarter.
This is not the first time AOL has laid off employees this year. In January, 725 employees were laid off as part of overall cost-cutting measures after AOL and Time Warner completed their merger. In total, AOL Time Warner laid off 2,400 employees during that round, or 3 percent of the company. Divisions including CNN, Warner Music Group, New Line Cinema, Warner Bros. and Time Inc. were also affected.
An AOL representative declined to comment on the layoffs.