AOL is set to cut thousands of jobs as the company streamlines itself into an online advertising agency, according to the Associated Press (AP).

The news agency reports that around 2,000 jobs are set to be cut in an attempt to allow the company to focus on internet marketing and leave behind its old position as one of the web’s premier service providers.

It is thought that projects such as Moviefone and MapQuest will remain a key focus for the company, which last autumn cut its employee numbers by 5,000.

The job cuts follow losses in the internet subscription part of AOL’s business due to more people looking at the broadband services provided by cable and telephone operators and a shift towards what AOL chief executive Randy Falco calls: "The largest and most sophisticated global advertising network."

Commenting on the most recent losses, AP reports Mr Falco said: "This realignment will allow us to increase investment in high-growth areas of the company … while scaling back in areas with less growth potential or those that aren’t core to our business."

It is thought that the majority of the cuts will be in the US, in particular at the company’s northern Virginia headquarters where 750 redundancies are expect to be made.

AOL was purchased by media giant Time Warner for $124 billion in 2001.

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