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AOL Time Warner plots cutbacks

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.