Updated from 2:56 p.m. EST

Time Warner

(TWX)

announced Wednesday that it would lay off 10%, or 700 people, from its

AOL

workforce, according to media reports.

AOL is narrowing its focus to social media businesses and online advertising, according to

The Wall Street Journal

and

Reuters

. News of the layoffs and a copy of an internal memo from AOL CEO Randy Falco were posted first on the blog AllThingsD.

"The deepening economic recession has affected every corner of the economy, including our own," Falco wrote in a memo to employees Wednesday. "Online marketers have tightened their ad buying across the board, reducing their spend by hundreds of millions of dollars." "Reducing our workforce is never easy, particularly in the current climate, but our goal in doing this is to provide our core businesses the resources they need to thrive," wrote Falco.

The job cuts will be finalized by the end of March and will take place primarily in the U.S., Falco said. The rest will be made abroad over the next several quarters.

Time Warner shares were recently up 2.3% to $10.06.

This article was written by a staff member of TheStreet.com.