The job cuts come a day after the company named a new executive vice president for that division, former USA Networks executive Lisa Brown.
The cuts will be announced Tuesday, the sources said. The division has about 600 employees, after a round of job cuts it made in May.
In the second quarter, AOL's advertising and commerce revenue dropped 42 percent from the previous year, a decrease attributed to the burst of the dot-com bubble.
AOL's new chief executive, Jonathan Miller, also a former USA Networks executive, has been trying to boost the company's sluggish ad sales. Executives are expected to present a plan to parent company AOL Time Warner's board of directors this week, and to the public in December.
In addition, Miller has been reshuffling the executive ranks in anticipation of a strategic shift in operations. Veteran AOL executive Ted Leonsis is taking over the interactive services division, replacing James de Castro.
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Discuss: AOL trims online marketing staff
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