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AOL is axing 700 jobs in response to the hordes of users fleeing the service.

The bulk of the jobs are to be lost at its "Member Services" organisation with the closure of its operation in Orlando.

Some jobs in Dulles have also been zapped while a "small number of actions across our worldwide operations were taken in an effort to streamline activities or eliminate unnecessary costs," said the internet giant in a memo to staff.

"In all, more than 700 positions have been eliminated and, as always, the company has strived to treat all our affected employees fairly," said AOL.

This latest round of restructuring comes as AOL - which lost more than 2m paying punters last year - appears to be lining up a joint venture with any number of hopefuls.

The Time Warner company is reportedly holding talks with Microsoft, Google, Comcast and Yahoo! that could lead to a possible tie-up. ®

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