AOL is axing 1,300 call centre staff across the US in response to falling internet subscriber numbers.
The company also said its customers were now more savvy at sorting out technical problems and needed less customer support.
AOL revealed that the volume of calls to its US call centres had halved since 2004.
By December 2005 AOL's subscriber base had fallen by more than a quarter since September 2002, when its customers numbered almost 27 million.
The latest round of job cuts at AOL represents around 7% of its global workforce.
The redundancies come after the axing of around 700 US jobs in the last quarter, and continuing moves by AOL to slim down its customer support operations in Europe.
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AOL merged with Time Warner in 2001. AOL Europe claims around six million customers.
Instead of relying on providing simple internet connectivity to subscribers, AOL is now concentrating on becoming a major broadband provider.