There are likely to be more job cuts at Yahoo! - the first since Carol Bartz took over the CEO's job in January.
Official confirmation is unlikely ahead of the company's first quarter results on 21 April. A spokesman for the company refused to comment to The Register.
Yahoo! cut 1,500 positions in December last year while Jerry Yang was still in charge. The company had 13,600 employees at the end of last year and the new cuts could hit several hundred people, the New York Times reports.
It is expected the company's revenue will have been hit hard by falling ad revenues - display revenue was down in the fourth quarter although it did grow search revenue.
Just last week it emerged that Yahoo! and Microsoft might have restarted their aborted takeover talks. Any such deal would likely value Yahoo! at a fraction of the price Ballmer was prepared to offer for it a few months ago - he was offering $47.5bn, but Yahoo now has a total market cap of $19.6bn.
This time round the deal could just be an advertising partnership.
Carol Bartz is widely seen as Yahoo!'s last best chance, and has already focussed attention on squeezing more money out of the firm's search business. ®