AOL set to lay off hundreds from online arm

AOL Time Warner is expected to announce layoffs in its online unit to meet its aggressive financial goals, according to a source familiar with the matter.

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.