The job cuts come a day after the companya 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 ofit made in May.
In the second quarter, AOL's advertising and commerce revenue42 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 isthe interactive services division, replacing James de Castro.