Oxford English Dictionary - Word of the Year
unfriend – verb – To remove someone as a ‘friend’ on a social networking site. As in, “I decided to unfriend my roommate on Facebook after we had a fight.”
“It has both currency and potential longevity,” notes Christine Lindberg, Senior Lexicographer for Oxford’s US dictionary program. (read more...)
Though the OED cites the first usage of the term being used in 1659 - "I hope, Sir, that we are not mutually Unfriended by this Difference which hath happened betwixt us."
IT isn't really the Oxford English Dictionary but the Oxford American Dictionary. In the comments section there are a few snide comments about the difference, but it's still Oxford University behind it.
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