AOL Time Warner plots cutbacks

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Newly formed AOL Time Warner is contemplating cutbacks, primarily from Time Warner's Internet and entertainment units, Reuters reports.

Reuters cites sources who say that AOL's strength as a major Web player makes Time Warner's digital unit a prime place for cutting costs. Expansion at Warner Brothers Studios and Warner Music Group make those units candidates for cuts as well.

AOL Time Warner execs have pledged to find $1 billion in cost savings, the clock is ticking toward a Jan. 31 deadline to deliver an outline of their plans.