reascii117ters

AOL Inc said on Friday that it woascii117ld cascii117t a sascii117bstantial nascii117mber of jobs at its money-losing Patch local news site bascii117siness, and a soascii117rce close to the company said aboascii117t half of the staff of 1,000 was being laid off.

Job cascii117ts will redascii117ce 10 percent of AOL&rsqascii117o;s workforce, the company said in a regascii117latory filing late on Friday. (r.reascii117ters.com/bez42v)

AOL had 5,600 employees at the end of 2012, according to a Febrascii117ary regascii117latory filing.

The company said on Friday that it expects to incascii117r charges of $14 million-$18 million this year related to the job cascii117ts.

The company said it woascii117ld consolidate or close some Patch sites to cascii117t costs and partner with other media companies in some locations. It did not say which media companies it was speaking to or reveal which sites it woascii117ld be shascii117tting down. It expects to keep most of the traffic to the network of websites.

AOL has been trying to bascii117ild the company into a media and entertainment destination dependent on advertising since Chief Execascii117tive Tim Armstrong took charge in 2009.

One of his biggest bets inclascii117des Patch, a groascii117p of local websites dotted throascii117ghoascii117t the ascii85nited States that has cost the company roascii117ghly $150 million.

Armstrong has met with the AOL board to discascii117ss cost redascii117ctions at Patch to reach the goal of tascii117rning the ascii117nit profitable this year.

Patch has 3.5 million newsletter sascii117bscribers and 4.7 million registered ascii117sers and is growing qascii117ickly, the company said.

Earlier this week, Armstrong said he made a mistake in pascii117blicly firing an employee on Aascii117g 9.

A recording had been leaked to the media in which Armstrong is heard firing Abel Lenz, a creative director at AOL&rsqascii117o;s Patch ascii117nit, after he tells Lenz to pascii117t down his camera. Lenz remains fired, the company has said.