NEW YORK - AOL has decided to cut around 600 jobs and move around 300 more to outsourcing partners as part of operational changes, chairman and CEO Tim Armstrong said here Thursday. 
 
 RELATED: The Hollywood Reporter's AOL strategy issue, in which Armstrong denied there would be layoffs. 
 
 
 
 The cuts include around 200 layoffs in the U.S. tied to the recent acquisition of the Huffington Post, he said. 
 
 
 
 He told the 2011 Media Summit, organized by Digital Hollywood and sponsored by Bloomberg, that he announced to AOL staff Thursday morning three things that led to cuts and reassignments - the effect of the integration of the Huffington Post, a reduction in the number of AOL's brands and sites, and changes in AOL's India operation. Overall, around 900 jobs are affected, he said. 
 
 
 
 In India, about 300 staffers will move from AOL to outsourcing partners, while around 400 will lose their jobs, he told The Hollywood Reporter. 
 
 
 
 Armstrong told the conference that the Internet company is reducing its online brands and sites from around 340 to about 40 to focus on the strongest ones. He didn't mention the fate of specific brands. 
 
 
 
 Saying that he has a different opinion from Silicon Valley folks in this regard, Armstrong predicted that in the future, people won't have 50 apps on their mobile devices, but "a set of brands that will allow you to navigate and curate your existence." AOL wants its brands to be among those. 
 
 
 
 Asked about the benefits of the Huffington Post deal, which has led to a decline in AOL shares so far, Armstrong predicted the stock would eventually rise. 
 
 
 
 AOL has been an Internet company in terms of business, but not always in terms of organization and infrastructure, Armstrong said, citing that there were maybe 400 content engineers and as many editorial staffers. An Internet company should have fewer engineers that build systems that allow many editorial people to create content, he argued. 
 
 
 
 Asked about Arianna Huffington, who is now overseeing the company's editorial operations, Armstrong said: "She will turn out to be "a very lynch pin talent for us" because she's "fearless and tireless." 
 
 
 
 "We'll end up being a better content company," he said. 
 
 
 
 Armstrong also answered questions about AOL before his time and how he is managing things differently. 
 
 
 
 He said AOL had spent $9 billion on acquisitions before him, but that use of cash "didn't lead to success." 
 
 
 
 Armstrong said "excess cash is like a rich uncle" whose presence never forces you to learn how to live on your own. 
 
 
 
 By the second half of the year or 2012, "AOL will be back in the fight," Armstrong vowed, saying the company was on the ropes mindful of a scene from Rocky 3 when he joined. 
 
 
 
 Asked about the level of top executive turnover since his arrival at the company, Armstrong estimated it at 90 percent. He said he cut out $30 million in retention bonuses, adding: "That's a very hard pill to swallow" for many. 
 
 
 
 Discussing partnerships with such female stars as Heidi Klum and Queen Latifah, Armstrong on Thursday also reiterated that women are "a huge opportunity for us." 

 UPDATE: We've been covering AOL's layoffs all morning long. Below is a memo from CEO Tim Armstrong detailing what's happening. 
 
 Other stories we've covered: 
 
 Original: AOL is going to fire hundreds of people today following its merger with the Huffington Post. 
 
 We have the memo from AOL CEO Tim Armstrong. 
 
 Highlights: 
 
 The severance package. "Affected employees will be notified today and AOL will offer assistance programs -- including workspace, counseling, and technology." 
 
 AOL Media survives. After some debate, AOL will keep the AOL brand in media, which 99% of people recognize. 
 
 "Towns" and "Mayors" are gone. "We are creating Department Editor positions for each of the editorial departments and their partners will be the General Managers (formerly our Mayors), who will continue to serve as CEOs, driving revenue, distribution and overall growth strategy for the departments they support." 
 
 Seed is not in danger, but the AOL network of sites will focus on hiring its best writers fulltime. "Going forward, AOL will invest more heavily in our in-house editorial team and transition away from a reliance on freelance journalists." 
 
 200 canned in editorial. "As a result of this new structure, close to 200 people will be leaving the AOL Media and tech groups in the US." 
 
 India hammered. "We have decided to focus our efforts on the India consumer market and move the business processing functions to scaled partners…The structural changes in India will impact close to 700 jobs, with approximately 400 transitioning out of the company, and 300 transitioning to outsourcing partners to continue to work on the AOL business." 
 
 You'll know by 3 PM EST: "Impacted employees will be notified by 3 PM EST today and we will be scheduling an all-employee call at 5pm EST to answer any questions you may have." 
 
 Send the call-in details to us! 
 
 Layoffs are horrible for those affected by them, but AOL's remaining employees – and its shareholders – should take solace in the fact that the company has to make cuts like these if it's going to ever get started on Tim Armstrong's long-promised turnaround. 
 
 But again, days like today are terrible for those who walk away without a job. We extend our sympathies. 
 
 Here's the whole thing: 
 
 From: Armstrong, Tim 
 
 Sent: Thursday, March 10, 2011 5:46 PM 
 
 To: Armstrong, Tim 
 
 Subject: AOL's Next Step 
 
 AOLers - 
 
 Today is the next critical step on the comeback trail for AOL. We are creating a next generation hyper-local, national and global media company, and every action we've taken since AOL became an independent company has taken us further down that path. Our strategy remains clear: create high quality content experiences for consumers, at scale. As the digital landscape quickly evolves, so must our business, and we must continue to transform our organizational structure to one that works for today’s Internet. 
 
 Today, we are announcing an organizational structure that will significantly improve AOL’s ability to focus on growth. The structure will also impact areas of our team -- making the decision to reduce staff levels is a necessary part of rebalancing our workforce to be competitive in our industry. Affected employees will be notified today and AOL will offer assistance programs -- including workspace, counseling, and technology. We ask all of our employees to help impacted employees find career opportunities within our industry. 
 
 The structural changes at AOL are possible because of the progress we have made as a team in the last 12 months. The majority of our sites have materially improved their consumer experiences, our advertising business continues to get healthier and more innovative, our video position is strengthening everyday, our local footprint is quickly expanding, we are attracting some of the most talented people in the world to work at AOL, and our technology infrastructure is simpler and more robust. AOL is a global brand and a global opportunity and we are doing the hard work that will once again make the company an industry leader. 
 
 There are three important aspects to the structural changes we are making today. The first is the architecture of our brand portfolio. The second is the organizational design of The Huffington Post Media Group. The third is our shift from India being a business process center to India being a consumer products group focused on the APAC market. 
 
 New Structure: Investing in our Brand Portfolio 
 
 AOL’s brand portfolio has become more focused and stronger over the last year and we will continue to invest in our brands. We are committed to an AOL brand architecture that empowers us to build best-in-class brands that serve valuable audiences with incredible content and great experiences. As you have seen and have access to, AOL’s brands are measured with a consistent set of criteria that will allow us to transparently judge the health of each brand. As we considered adding The Huffington Post, we looked at the combined assets of the two companies and have found creative ways to strengthen our portfolio and will continue the brand refinement process over time. 
 
 AOL will have four areas of significant brands: Media (Media & Ads – including Local), Publisher Networks (Media & Ads for Publishers), Applications (Communications, Mobile, Commerce), and Subscriptions (Paid Subscribers). 
 
 We have a clear path to brand success — which is only turbo-charged with the addition of the Huffington Post to our brand portfolio. We have an AOL brand that enjoys 99% brand awareness and our commitment to reinvigorating the AOL Brand has enabled us to begin to shift brand perception of AOL — including being named as one of the top 50 brands "loved" by consumers at the end of 2010. We will continue to invest in the AOL Brand as well as support best-in-class brands that will allow us to grow our overall audience and reflect our focus on the most valuable audiences — our 80, 80, 80 strategy. 
 
 Next: The HuffPo and India re-orgs…
– The rumored layoffs have arrived. AOL CEO Tim Armstrong today announced that the company would cut 200 US jobs, with the content side bearing the brunt of the layoffs. The Hollywood Reporter notes that a total of 900 jobs—or 20% of the workforce—will be done away with: Some 400 employees in India will be axed, and another 300 jobs there will be transitioned to outsourcing partners. AOL's brands and sites are getting a major slimdown: They'll shrink from 340 to 40, though Armstrong didn't mention any specifics on which would go. Business Insider adds some tidbits gleaned from Armstrong's memo to the staff: Those affected will hear by 3pm today, and will be offered "workspace, counseling, and technology ... assistance programs." AOL will keep the AOL brand in media.