AOL Layoffs Highlight Time Warner's Quandary

News of more layoffs at AOL came as no surprise on Wall Street, where recent setbacks for the beleaguered Web concern have convinced many investors that its media-giant parent, Time Warner(TWX Quote), needs to get rid of the business.

Tricia Primrose, a spokeswoman for AOL, confirmed Monday that the company will be laying off roughly 2,000 employees -- a fifth of its total workforce.

AOL already slashed 5,000 jobs last year as it embarked on an effort to transform the business from a subscription-based model to an ad-supported model more like Google (GOOG Quote) and Yahoo! (YHOO Quote). ...