AOL Inc will cut more than 900 jobs, including 400 jobs in India and outsource 300 jobs in India, reports quoting sources close to the development said.
The 300 jobs in India will be transferred to contractors MindTree Ltd and Hewlett-Packard Co, reports said.
AOL will cut 200 jobs in the US as it reduces its global workforce by 20 per cent as the internet company tries to stay trim and catch up with rivals.
AOL, which was spun off from Time Warner Inc in 2009, has 5,000 workers across the world.
The company recently struck a deal to buy The Huffington Post news and commentary website for $315 million.
AOL plans to cut jobs in the media and content-production areas in the US, leaving advertising sales and network operations positions untouched, sources said.
In the process, the company will also reduce dependence on free lancers and increase the number of full time journalists.