Is Yahoo heading for the Chop?

Yahoo is preparing for a massive headcount reduction as Silicon Alley insider, Techcrunch and a host of other blogs/news sources, reported that Yahoo will shed between 1500 and 2000 jobs - which represent between 12 and 16 percent of the company's worldwide workforce - within the next two weeks, depending on its omnipotent CEO, Jerry Yang.

Some employees have even been told to return their computers within a few days and start looking for jobs either within or outside Yahoo, with some jobs being moved to Europe.

Only Right Media, an online ad auction network firm which Yahoo purchased in response to Google's purchase of Doubleclick, appears to be spared any headcount reduction.

One of the reasons that have prompted Yahoo to consider cutting its workforce is the poor display of its shares - losing nearly 10 percent since last Wednesday - even as Yahoo continues to lead Google when it comes to the number of page views or visitors.

And nothing gives investors more reasons to smile the sight of the pink slips. Expect Yahoo's shares to get a welcomed boost after the layoff announcement is made official by the end of the month, when the company announces its Q407 earning results.

Will Yahoo!'s plans "to invest in some areas, reduce emphasis in others, and eliminate some areas of the business that don’t support the Company’s priorities." become true?

Stay tuned for more.