Along with several hundred layoffs taking place in the U.S. tomorrow, which BoomTown reported earlier, AOL is also drastically cutting staff at its Indian unit right now, sources said.

According to sources, AOL India will lay off 400 employees in Bangalore, as well as transition 300 more to contractors working for partners.

That leaves about 200 staffers there, who will work on consumer-facing products for the Indian and Asian markets.

The New York-based Internet giant is also laying off several hundred people starting tomorrow in very targeted areas of the company’s U.S. operations, in a move that its CEO Tim Armstrong signaled last week was coming.

Sources said there will be no employees let go in its network group or advertising sales unit, but editorial and other media product groups will be impacted.

Despite the pain for AOL employees, the long-rumored layoffs are much smaller in number than the last one AOL did, in which 2,300 people lost their jobs. Before the layoffs this week, the company had a little more than 5,000 employees now.

The drastic cost-cutting comes right after the purchase of the Huffington Post, which AOL bought for $315 million. The acquisition of the news and opinion site closed on Monday.

Back on April 7, Tim Armstrong sent a memo to the long-battered troops of AOL about a 100-day vision quest the new CEO and chairman was going on to find out “how to bring back the magic of AOL.”

It is now Day 86, and Armstrong is closing in on the end of a Where’s-Waldo commitment that he made then to visit all of the far-flung offices of the Time Warner (TWX) online unit globally.

More importantly, as it is almost over, Armstrong also has to make good on another promise he made in that memo he sent to the staff on his first day:

“The culmination of the 100-day process will end in Dulles with an All-Hands meeting in mid-July. At that meeting, we’ll review the feedback we’ve received–both internal and external. We’ll also discuss our strategic direction for the coming years, and highlight areas that will bring AOL and AOL properties into the next decade of digital leadership. Most importantly, we will set a course and focus all of our resources to make that course a success.”

BoomTown is eager to see what Armstrong has found out on his trip and what path it will ultimately put AOL on.

So far, the broad outlines of his strategy seem to center on expanding AOL’s content assets, strengthening its advertising network and getting out of businesses the company cannot compete well in, such as social networking.

What other pearls of wisdom Armstrong has gleaned are to still to be revealed, presumably.

His corporate version of “The Amazing Race” is certainly a novel idea, born at his first all-hands meeting in Dulles, Va., which used to be the world-wide HQ of AOL and remains its heart.

There, Armstrong (pictured here) joked to the crowd:

“I know that work goes on across the globe and, in the first 90 days, I’m going to try to visit every office we have and sit down and talk to every employee and that will be something that my wife has actually agreed to let me do so.”

Thus, spouse-approved, the former Google (GOOG) exec has circumnavigated the globe and has held meeting with employees in a wide range of places: Dulles; New York; Baltimore; San Francisco; Mountain View, Calif.; Toronto, Lancaster, Pa.; Denver; Hamburg; London; Paris; Bangalore; Dublin and, this week, Tel Aviv.

But it has not been all tourism, in search of innovation.

During this time, Armstrong has also dispatched employees and top execs, such as advertising head Greg Coleman and communications and communities head Joanna Shields, and hired a few key staffers of his own; announced a pending spinoff of the company; and bought some stuff (including a company he funded).

It will be interesting to see what comes next–after the 100-day gathering in Dulles, which should come sometime after Armstrong’s July 15 deadline, of course.

Party on, Tim.

Actually, it seems quite systematic. “It’s part of the global cost-cutting move,” one Oracle (ORCL) employee tells The Times of India, which notes that 40 workers were just let go at the company’s Bangalore offices. “This is just the initial move and the numbers will definitely increase. By next week, we should get the actual figures.”

Now, word on the street has it that the figure in question here is somewhere around 8,000. But there’s no mention of Oracle in the latest EDD Worker Adjustment and Retraining Notification list, which would seem to suggest that 8,000 figure is bogus. And according to our sources it is. We’re told that layoffs are occurring, but that their number is in the hundreds, not thousands.

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