Yahoo announced last week that it was going to layoff some 2000 employees (14%) of its workforce, as part of a strategy to streamline business operations and trim expenses. New Yahoo CEO Scott Thompson said that, after a lengthy internal review by a new management team, Yahoo needed to focus its efforts on a "select group of core businesses globally, ... that includes getting today's core properties right and innovating on a next generation of great product experiences across all screens."
The announced changes would eventually save Yahoo some $375 million a year, with the hope that the cuts would make the company more nimble, profitable, and better equipped to innovate. Anonymous insiders warned that the announced cuts may be the first stage of even larger cuts.
Source - Yahoo cuts 2,000 job and more layoffs are likely, Fierce Online Video