Sources claimed AOL vice-chairman Joseph Rippat, the executive overseeing the company's restructuring plans, has informed managers that no division of the world's largest ISP will be immune from the job cuts.
Representatives at AOL could not immediately be reached for comment.
News of the massive cost-cutting measures comes three days after AOLTW executives laid out plans for turning around AOL. AOLTW insisted it could boost AOL's fortunes by generating more revenue from its 35 million subscribers through broadband and premium services, while reining in costs, retooling advertising offerings and restoring the company's integrity.
AOLTW announced earlier this week that it expected steep declines of up to 50% in its AOL commerce and advertising revenue for 2003.
AOL employs more than 5,500 people in its northern Virginia headquarters and also has offices in New York, California and Ohio. Along with cutting jobs, mainly in Virginia, AOL was also looking to save money on computer network expenses.
On Thursday, Miller held a meeting with AOL's 250 division heads to detail the cutbacks required in strategic areas to shore up the business. Miller warned in the meeting that the company needs to set realistic goals for Wall Street to restore the company's credibility.
AOL has been forced to restate financial results, and federal investigators are looking into whether former AOL executives purposely misled accountants and others in an effort to inflate revenue figures artificially.