Yahoo takes axe to workforce

Internet also-ran Yahoo is preparing to cut up to 650 jobs today, according to sources that know their onions.

Yahoo's products group will bear the brunt of the action, according to the Wall Street Journal. The group is run by Blake Irving, who joined Yahoo in April after previous axe-swinging experience gained at Microsoft.

Yahoo chief executive Carol Bartz is determined to turn the outfit around having watched Google scale the heights as Yahoo! stands relatively still.

The cuts will hit around five per cent of the workforce, meaning a grim Christmas for many and more turkey for the shareholders. Bartz will probably get a bonus on her multi-million dollar salary and whatever the 650 folk have been doing up until now will be outsourced to hungrier cheaper folk on temporary contracts elsewhere. That's the way it normally works.

Yahoo! is declining to comment on the reports.