Analysts expect revenue from the recent fourth quarter to grow around 15 percent, according to data from Reuters Estimates.
As part a turnaround plan, the company elevated co-founder Yang to become CEO last June. Together with President Sue Decker, Yahoo has shed low-performing businesses while making several small-to medium-sized acquisitions.
But to date, it has resisted calls by Wall Street analysts and some investors to take several more drastic steps including large-scale layoffs, outsourcing of its web search business to Google or a potential merger with Microsoft Corp.
Layoffs will focus on areas of the business that do not fit within the three main strategies the company has focused on under Yang. These are to make Yahoo.com the "starting point" for more web users, to make its online ads a "must buy" for advertisers and to open up its sites to outside developers.
The focus of the cuts will be on "anything that doesn't target the three Big Bets," the source said.
