Yahoo says no comment, but sources inside the Internet company suspect that more cutbacks could be in the offing in the coming weeks.
On Tuesday, Yahoo laid off an estimated 1,100 employees in a bid to cut costs and trim operations that weren't performing as well as others. Among the departing executives were Randy Farmer, community strategy analyst at Yahoo and a virtual worlds pioneer, and Bradley Horowitz, who was head of the company's Advanced Technology division.
Some financial analysts have said that unless Yahoo cuts in excess of 1,500 employees, the layoffs won't be an effective cost-saving measure. Word among some employees is that after Tuesday, Yahoo could have more rolling layoffs that would bring the total staff reduction to a number more like 2,000 people. Before the Tuesday cuts, Yahoo employed 14,300 worldwide.
If they happen, the additional cuts could include a 5 percent reduction in Europe, where Yahoo hasn't performed as well as other overseas markets like China, according to one Yahoo insider who asked to remain anonymous. Yahoo does not break out how many employees it has in various offices, but in a recent quarterly filing it reported that more than half of its staff works outside of its Sunnyvale, Calif., headquarters.
There's been very little transparency for managers inside Yahoo as to who and how many would be cut. But considering the depressed culture inside Yahoo and a possible takeover by Microsoft, more employees could simply ask to go.CNET News.com's Elinor Mills contributed to this report.