As it begins to offer its online services for free and cuts back its internet access business, Time Warner's AOL online division said about 5,000 workers would no longer be working for the company within six months.

A day after announcing its nearly wholehearted embrace of an ad-supported business model, AOL said more than a quarter of its staff would not be on its payroll within six months as part of a worldwide restructuring, writes Reuters. AOL said Thursday it expects restructuring charges of up to $350 million by the end of 2007; on Wednesday it also said it plans to cut some $1 billion in operating expenses in 2007.

AOL expects to sell by fall of this year its European internet access businesses, which employ some 3,000 people. It's in negotiations to sell its businesses in France, the U.K. and Germany. Also likely to be affected by the restructuring are customer service representatives and employees who market the internet access business.