Another round of layoffs is about to hit AOL Time Warner Inc, this time at the company's Internet unit, as the media giant tries to ensure it will meet its 2001 financial targets.

Sources said the timing and the exact number of cuts at the unit, often referred to as the company's "crown jewel" by executives, was still unclear.

The unit, which is based in Dulles, Virginia, employs about 16,000 people worldwide.

Several reports put the number of layoffs as high as "several hundred" with one saying as many as 1,000 employees could lose their jobs.

A company spokesman declined to comment.

The cuts would be the second major round of layoffs at the world's largest internet and media company this year. Some analysts said such cuts were expected given the current economic climate. Shares of AOL Time Warner closed down nearly 3 per cent, or $1.31, at $42.99 on the New York Stock Exchange last night.