AOL will cut 10% of its workforce, according to Kara Swisher. That amounts to 700 employees.
The cuts will attempt to focus efforts in New York City, part of a gradual attempt to headquarter there. That will mean consolidation in Silicon Valley, Los Angeles, and the DC suburb of Dulles, site of the original HQ. It will also scaled down international business, which hasn't served them well.
Last year, parent company Time Warner announced that it would split AOL into two: one part internet access and one part search/media. Time Warner has been attempting to forge a merger or sale with Yahoo for nearly a year now.