Internet giant Yahoo is slashing more than 600 jobs - about 4% of its workforce - in its fourth round of layoffs in the past three years.
The company has been suffering from sluggish growth and its share price has hardly moved in recent times.
Revenues have risen by less than 2% so far this year, compared with growth of 23% at bigger rival Google, the BBC reports.
The redundancies also follow after Google recently announced a 10% pay increase for every member of staff.
In 2008 Yahoo rejected a $US47.5 billion bid from Microsoft. The BBC says its market capitalisation - the combined value of its shares - now totals $US21.68 billion.