Time Warner's

(TWX)

America Online division reportedly plans to cut 700 jobs next month in a concession to declining subscription rates at its flagship Internet unit.

The cuts will occur mainly at the company's headquarters in Dulles, Va., where about 5,000 people currently work, the

Washington Post

reported. AOL shed 850 jobs in 2003.

Time Warner reports earnings Wednesday and is expected to post a profit of 14 cents a share, up from 12 cents last year. The company reported total AOL subscribers of 23.4 million in the second quarter, down about 2 million from the second quarter of 2003.

The stock was unchanged at $16.38 in premarket trading.