That amounts to cutting 20 percent of AOL's staff.
AOL spokesman Graham James confirmed to PC Advisor's sister title Computerworld that 200 workers from the company's offices in the US will be laid off. James also said 700 people in AOL's offices in India will be let go, although 300 of them will be hired by HP.
AOL, which has become something of an internet has-been, is looking to reinvent itself and, as part of that goal, announced early last month that it was purchasing the Huffington Post, which has become the second most popular news website in the US after The New York Times.
AOL is reported to have paid $315m for the Huffington Post.
News of AOL's latest acquisition came just a few months after AOL scooped up technology news publisher TechCrunch and its family of websites.
AOL has struggled in recent years, after once being a top dog in the internet world. In a bid to boost its digital content and drive readers to its sites, the company, which also owns the consumer technology site Engadget, has been buying up online media sites, including the Patch community sites, which focus on local coverage.
Last autumn, there even was a lot of online buzz that AOL was poised to make an offer to buy Yahoo.