With Google taking the world by storm and Yahoo trying desperately to keep up, the company may be poised to lay off hundreds of people in an attempt to cut costs and create a stronger brand to compete more effectively.

According to The New York Times, the final number of layoffs is yet to be determined, but will likely be announced during Yahoo's conference call with investors on 29 January.

Long-term values

A Yahoo spokeswoman declined to comment on the exact nature of the layoffs, but did say: "Yahoo plans to invest in some areas, reduce emphasis in others and eliminate some areas of the business that don't support the company's priorities. Yahoo continues to attract and hire talent against the company's key initiatives to create long-term stockholder value."

Yahoo's decision to reduce its workforce shouldn't come as a surprise. With slumping revenue and its seeming inability to compete with Google, co-founder Jerry Yang ascended to the position of chief executive last summer to address issues and calm a growing rift between company executives and shareholders.

After a 100-day monitoring period, Yang reported that his company would need to refocus its efforts and cut costs where appropriate to revitalise the brand. Evidently, layoffs could be the first step in that process.