Yahoo's woes continue to pile up and the latest difficulty is poised to hit the company's employees as reports emerged that newly-appointed chief executive Scott Thompson plans to axe thousands of workers soon.

Tech blog site All Things Digital reported on Monday that Yahoo is looking to downsize its current workforce of 14,000, with likelihood that thousands would be given the boot by the end of this month.

Citing Yahoo insiders, the blog site also suggested that specifically targeted for the adjustments could be the hordes of contractual workers engaged by the internet giant for software development duties, presumably most of them reaching the last leg of their contracts that Yahoo will not renew.

Also identified as likely casualties were the company's staffs handling the marketing and public relations department, All Things Digital wrote on its report.

Yahoo's regional operations will feel the pinch of the job cuts, indicating that Yahoo's consolidation moves will impact on its global operations.

Analysts viewed the latest development as the gradual roll out of Thompson's blueprint for Yahoo's immediate turnaround, a goal that has eluded the once dominant search engine firm in the past years.

The company's new move, media reports said, also highlighted the corporate changes that have been in motion since Yahoo welcomed the arrival of Thompson, formerly of PayPal, who had vowed that Yahoo will soon rediscover its old glory it unwillingly ceded to Google.

Or at least trigger a recovery this year, which saw the company witnessing the departure of its founder Jerry Yang.

Following his experiment as CEO and then slowly fading into the background, Yang finally stepped down from the boards as Yahoo investors ramped up their pressures for the firm to finally come up with the right formula to at least mount a credible against its competitors.

Yang's exit, analysts said, should allow Thompson to effectively impress his mark on the company and duplicate the success that he had reaped while steering PayPal into prominence and profitability.

According to Agence France Presse (AFP), Yahoo has opted to withhold details on the latest company development but its statement indicated that the company has been studying decisions that could shape its future, with no definite policy in place at this time.

"As we have indicated, our leadership is engaged in a process that will generate significant strategic change at Yahoo, but final decisions have not yet been made at this point," the company told AFP.

Part of such changes could be the latest efforts by Yahoo to milk revenues from its patent ownerships that it claimed were being employed by other firms, most notably by the hugely popular social media site Facebook.

The two confirmed last week that they were in the process of negotiating Yahoo's demand that Facebook must agree into a licensing agreement, which reports said could deliver billions of revenues to the company.

Also in the pipeline, AFP said, is the planned divestiture of Yahoo's assets in China and Japan though talks on the matter have yet to advance in light of the leadership transition that the company had to deal with in the past months.