MUMBAI: In a bid to reverse its declining fortunes through cost cutting measures Time Warner's unit America Online, which claims to be the world's largest internet service provider, will lay off over 700 employees shortly.

Late last year, AOL had cut 450 jobs in California, where it closed offices in San Francisco and San Diego.

A report in The Washington Post adds that the move would affect people working at the Internet firm's Virginia headquarters.

In recent months AOL has been badly hit by users leaving its service for broadband connections .

Another Associated Press report states that AOL is expected to be a key topic for investors when Time Warner announces its earnings for the third quarter. Investors will want to know the efforts AOL is making to tap new kinds of revenue as dial-up users migrate to high-speed internet connections.

AOL employs about 13,000 people in the US and 20,000 worldwide.