Sources from inside stated that Yahoo has already started firing the employees. The cut down is wide spread across all divisions and different locations. However, they did mention that the firing is based on performance ratings and not in a plan to close the entire opterations.

The financial status of Sunnyvale-based company Yahoo Inc went down further in the end of 2007 and as a result, the company has planed to lay off 1,000 of its employees.
 
However, Yahoo has not informed which areas of expertise would be reduced. It should be noted that Yahoo chucked out 650 employees way back in 2000 during the dot-com break down.
 
Yahoo Inc earned $205.7 million, this would be a 15 cents per share, during 2007’s final three months, a 23 percent drop from net income of $268.7 million, or 19 cents per share, at the same time in 2006.

With these bad statistics on Yahoo, analysts has alerted investors to expect the worst. The pessimism prompted analysts, on average, to project earnings of 11 cents per share for the period.
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