Washington, Dec 08: Troubled media giant AOL Time Warner Inc. plans to cut at least $100 million in operating expenses in its Internet unit because of a sharp drop in advertising revenue and a shift in strategy, The Washington Post reported.
Citing anonymous sources, The Post said AOL plans to slash hundreds of jobs at the Internet unit's Northern Virginia headquarters because it expects ad revenue to drop 50 per cent next year.

Vice-Chairman Joseph A. Ripp said the America Online service, which connects 35 million subscribers to the Internet, will face cuts in all divisions, including reduced computer network expenses and layoffs in New York, California and Ohio, sources said.

AOL has struggled amid a federal investigation into its accounting practices and skepticism from Wall Street after the company did not meet promised financial results.
The company reduced previously reported revenue by $190 million after an internal review this fall and said it cannot predict how the federal investigation may turn out. Bureau Report