Yahoo admitted way back at the beginning of the year that it was going to have to make as many as 1000 staff redundant.

But now a report in the Wall Street Journal is suggesting that there may be even more than this.

Tomorrow - Yahoo is going to report its quality earnings, according to Reuters, and is expected to outline a cost reduction scheme, which could mean more staff will face the axe.

The Journal says that Yahoo, which is not commenting on the rumours at the moment, will disclose the scale and timing of the future layoffs, but not how many jobs.

It added though that some Yahoo managers have been asked to identify operating budget cuts of around 15%.

There have been no responses from Yahoo on Microsoft Steve Ballmer's comments that a deal for the web company's search biz may still be possible despite months of rebuttals.