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Yahoo is gearing up to slash at least 10 percent of its workforce, which represent 1,000 employees, in order to alleviate their shareholder's fears over the "fate of the hemorrhaging tech giant", according to HNGN.

While the slashes would be all over the company, most of the cuts would occur in Yahoo's "media business, European operations and platform technology group" early this month.

The Sunnyvale, Calif., company were not forthcoming with views on the issue.

"We are not confirming this rumor or commenting further," Sarah Meron, a spokeswoman for Yahoo, told Reuters in an e-mail.

There were some reports of the layoffs after activist investor Starboard Value LP sent a letter to Yahoo on Wednesday, asking for a shake-up in the Yahoo management.

"Dramatically different thinking is required, together with significant changes across all aspects of the business starting at the board level, and including executive leadership," Starboard said in the email, according to The Los Angeles Times.

There has been a clamour for change by Starboard since last year. It has been pushing Yahoo to separate its Asian assets, especially the Chinese e-commerce company Alibaba Group Holding Ltd., and start a taxable sale of its central business, including Yahoo Mail, along with the news and sports sites.

However, Yahoo has not taken its suggestions well. It has chased a tax-free spinoff of the core business, which Starboard along with other investors believe would take too long, opening the company to a proxy contest.

Meanwhile, Yahoo has a tie-up with management consulting firm McKinsey & Co. to pitch in with improvements in the "reorganization of its core businesses". They are trying to restructure and consolidate the media unit, narrow their strategy and focus only on updating products.

Recently, Yahoo Screen was shut down, as it failed to give the promised revenue.