Reuters reports that once massive Internet service provider AOL is planning to cut a third of its workforce or 2,500 jobs.

The layoffs are part of a plan to cut down some $300 million in annual costs before its spin off from corporate owner Time Warner. The company has asked for volunteers but will make involuntary layoffs if necessary.

AOL expects to incur about $200 million in restructuring costs associated with the spin off from December 9, the date of the spin off, through the first half of 2010.

If you were anywhere but under a rock during the 90s you have probably heard of AOL and many people used to use it when dial-up was the only option for Internet. It was one of the most widely spread ISPs available in the days before broadband—if you didn’t have you at lest saw those free trial discs that were everywhere.

Then came AOL’s merger with Time Warner, which is lampooned by PC Mag as "one of the most disastrous corporate mergers in history." Nine years later AOL is spinning off and becoming independent once again.

The newly and once again independent AOL will focus primarily on advertiser-supported content.