Yahoo is tipped to axe 1000 jobs

Internet company Yahoo is expected to announce widespread cost cuts when it unveils its quarterly earnings tomorrow.

Insiders say it will discuss the scale and timing of job cuts. Analysts expect it to slash more than 1000.

Yahoo fended off a $33-a-share, $47.5 billion (£27.4 billion) bid from Microsoft before global markets crashed. It has since shuffled its management team and announced new products to try to boost its share price.

It recently hired consultants Bain to help identify potential "structural changes".

Microsoft chief executive Steve Ballmer said last week that a web-search advertising deal with Yahoo made economic sense and may still be possible, although the two sides are not in any discussions.

Yahoo is also reportedly still considering combining some of its operations with Time Warner's AOL.