The company, a unit of Time Warner Inc, currently employs about 29,000 people. Some of the job losses are expected to come if and when the company sells off its European internet access business.

The company is no longer very concerned with growing its internet access business. Rather, it wants to give its software for free to as many people as possible, to encourage them to use its services, where advertising is displayed.

As such, it has stopped aggressively marketing its dialup internet access services. This means no more CD mailshots, for example. Cuts are expected to come in areas primarily concerned with marketing dialup and supporting its dwindling dialup customer base.