Yahoo will lay off 2,000 employees as part of a broader effort by CEO Scott Thompson to slim the company and make it more profitable to its shareholders, CNN Money reported.
The Guardian wrote that the company is attempting to define its "core purpose." Once an internet giant, Yahoo has struggled to differentiate its services from bigger and more popular rival Google. It quit the search engine war in 2009, according to CNN, conceding to Google - which surged to popularity by offering a new search algorithm that provided more accurate results.
More from GlobalPost: On the hot seat: Ten tech CEOs who could be fired tomorrow
The cuts, which amount to 14 percent of the company's workforce, is the sixth downsizing in four years.
"Today's actions are an important next step toward a bold, new Yahoo – smaller, nimbler, more profitable and better equipped to innovate as fast as our customers and our industry require," Thompson said in a statement.
Yahoo still has many users, but Google and Facebook have both overtaken it in terms of web popularity. The company estimates it will save $375 million annually from the layoffs, according to USA Today.