AOL to Lay Off 1,300

AOL said Tuesday it will be laying off 1,300 workers in response to the changing needs of its business. Most of the affected employees are in the company's customer support facilities, and its Jacksonville, Fla., call center would be shut down completely. According to an AOL spokesperson, calls to its help lines have fallen by about 50 percent. The service says the drop in support requests has a lot to do with the increasing sophistication of its users.

Although support calls are dropping, the company is also suffering from shrinking revenues and falling subscriber numbers. The Reston, Virginia ISP lost another 865,000 subscribers, bringing its subscriber base to 18.6 million as of last quarter. Additionally, revenue fell seven percent. However, there were some positives in the quarterly numbers -- the company saw its ad revenues on its free services increase by 26 percent.