Reports in the Wall Street Journal, New York Times and major wire services all point to the lay-offs being announced next week. It is expected to be the biggest round of redundancies at Yahoo since 2001 following the dotcom bust.
The Associated Press quotes analysts in the US saying the company will slice about 5 per cent of staff from its 14,000-strong workforce – or 700 employees.
The analysts say Mr Yang is under intense pressure to cut costs at Yahoo in order to boost profits and improve the company’s flagging share price. He is also expected to restructure the firm, improving the competitiveness of its online advertising services, and to improve traffic flows to its main portal.
While Yahoo has not been losing money during its current struggles, it has not performed to the satisfaction of Wall Street with its share price being punished as a result.
Investors have been especially unhappy with the its performance relative to Google, the now dominant online search and advertising company.
The Yahoo layoffs are expected to be announced next Tuesday.
For more Digital Content news, click here.
