Yahoo is preparing to announce a major restructure which will see further jobs cut at the struggling web services firm.
Reports from both Bloomberg and AllThingsD cited sources familiar with the matter in claiming that chief executive Scott Thompson was preparing to announce a series of layoffs and cuts which are due to roll out in the coming weeks.
The reports suggest that job losses could run into the thousands, as the firm makes deep cuts in marketing and regional operations.
While Yahoo has yet to comment on the latest reports, Thompson has said in the past that it would need to restructure operations.
The latest reports come just two months after Thompson was named chief executive, arriving at the company following a stint as president of PayPal Inc.
Thompson inherited a company in disarray following a pair of brief and controversial runs under Jerry Yang and Carol Bartz.
Yang found himself ousted as chief executive in 2008 when shareholders revolted following failed merger talks with Microsoft.
He was replaced by Bartz, who attempted to change the corporate culture at Yahoo but was ultimately removed in a public clash with the company's board of directors.
Analysts said at the time of his hiring that Thompson would face formidable challenges in turning the company around and that a sale of the company could ultimately be in the cards.