The Wall Street Journal reports that Yahoo! could make an announcement about its savings plan on Tuesday, when its quarterly earnings statement is due. There are no estimates as to how many jobs will be cut, but several sources are reporting that they are planned.
If so, it will be the second time this year that Yahoo! has cut its workforce. In January it said that it was axing around 1,000 positions after a fall in profits. The company has around 14,000 employees.
Last week the company's share price plummeted to a five-year low of $12.90, as analysts said they feared an online advertising venture with Google may now not materialise. Earlier in the year Microsoft had attempted to buy Yahoo!, offering $31 a share, valuing Yahoo! $44.6bn.
The deal was rejected on the grounds it undervalued the company and Microsoft is now reported to have lost interest in any kind of acquisition deal.
According to the paper, Yahoo! has brought in consultants Bain & Co to advise on potential structural changes, and that the board is still considering a merger with AOL, owned by Time Warner.
Yahoo! has been hit by the dominance of Google and the rise of newer websites such as Facebook and MySpace. The economic downturn is widely predicted to see online display revenue dry up -- an important source of income for Yahoo!.
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