Yahoo layoffs, possibly this month, could reach thousands, report says

Yahoo CEO Scott Thompson may be close to announcing a major reorganization and sizable layoffs at the Sunnyvale Internet company, which has been grappling with falling revenue, dissident investors and a changing Internet landscape.


Thompson's plans could lead to thousands of layoffs being announced in coming weeks, according to two news reports Monday that cited unnamed sources.

But analysts warn that cutbacks alone won't solve the company's problems.

"I wouldn't say there is fat to be cut. I would say there has to be a transformation of the company," said Ben Schachter, who follows Internet companies for Macquarie Equities Research. "They cannot continue to conduct business as they have for the last 10 years."