AOL axing 700 employees

AOL will cut its work force by 10 percent today, laying off approximately 700 employees, as a result of the struggling economy and a decrease in advertising revenue, we've confirmed with the company. AOL has 7,000 employees worldwide. The cuts have been added to our Layoff Tracker. In a company wide memo (reproduced below), AOL CEO Randy Falco said the layoffs will be rolled out over the next few quarters and U.S. workforce reductions would be completed by March. He added that the company will eliminate merit pay increases in 2009.