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Yahoo Layoffs Expected To Be Announced Today

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ahoo Inc. is expected to begin handing out pink slips Wednesday to about 1,500 workers who are losing their jobs as the Internet company tries to boost its sagging profits.

The Sunnyvale, Calif.-based company disclosed its plans to trim its payroll by 10 percent in late October, but waited to complete the purge until management sorted out which workers and departments were the most expendable.

Most of the cuts are expected to occur in the United States, although offices in Asia and Europe also will be affected. Yahoo also may pull the plug on some products and services that aren't paying off.

Layoffs have become commonplace as both large and small companies cope with the worst recession in a quarter century.

But Yahoo's profits began to droop in 2006, well before the current downturn, causing some analysts to conclude that the company's work force should have been trimmed long ago.

Yahoo jettisoned about 1,000 workers 10 months ago, but then proceeded to raise the payroll back to where it was before those cutbacks.

After the latest streamlining, Yahoo will be left with about 13,000 workers.

The housecleaning comes as Yahoo searches for a new chief executive to replace co-founder Jerry Yang, who announced his plans to step down last month shortly after a proposed advertising partnership with Internet search leader Google Inc. unraveled.

Yang had been counting on the Google alliance to accelerate Yahoo's revenue growth and placate investors still upset by his handling of a $47.5 billion takeover offer from Microsoft Corp. in May. Microsoft withdrew the $33 per share bid after Yang sought $37 per share -- a level Yahoo's stock hadn't reached in more than two years.

Yahoo shares dipped a penny Tuesday to close at $12.19.

A timetable for hiring Yahoo's new CEO hasn't been set, although the board has indicated that it wants to settle on someone within the next few weeks.

Yahoo is believed to be considering several internal candidates, including Yang's chief lieutenant, Susan Decker, and board members John Chapple, Frank Biondi and Maggie Wilderotter. The company also is looking at a wide variety of outsiders, with analysts mentioning Yahoo's former chief operating officer, Dan Rosensweig, and News Corp. executive Peter Chernin as logical candidates.

Former Vodafone Group CEO Arun Sarin also is in the running for the Yahoo job, according to a Tuesday report in The Wall Street Journal, which cited unnamed people familiar with the matter.