As profit slides, Yahoo! Inc. announced it will cut at least 10 percent of its employees in the next few months as part of a plan to whittle down costs by US$400 million in yearly expenses of $3.9 billion, the Lost Angeles Times reported Wednesday.

About 1,500 workers will be laid off, but Yahoo! would not confirm when the cuts will happen.

Other cost-cutting measures are being discussed, such as consolidating workforces, offshoring and “flattening its management structure,” Jerry Yang, Yahoo!'s chief executive, told analysts, the LA Times reported.

“This is a top-to-bottom review,” said Sue Decker, president. “We are looking at everything.”

Yahoo!'s earnings were down 64 percent over the past year, from $151.3 million, 11 cents a share, to $54.3 million, four cents a share. Meanwhile, revenue increased 1 percent, to $1.79 billion, according to the LA Times article, posted by the Media InfoCenter.