Bangalore: It seems like nothing can stop Yahoo’s new CEO Scott Thompson from dragging the ailing internet giant back to track with his plans on complete restructuring. After threatening to sue Facebook over patents last week, company is now preparing for thousands of layoffs, reports Kara Swisher.

Yahoo currently employs around 14100 people globally, up more than four percent from the previous year. Company also has large groups of software contractors that work on products, whose cost is masked in its capital expenditure.

Major layoffs will be from company’s product division and from parts of public relations, marketing and research. Scott had recently hired Boston Consulting Group to help company in selecting the best path which focuses on growth. With the layoffs and cut in certain divisions, the motto is clear- concentrate only in areas that can generate revenue growth.

“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,” stated a recent email from Yahoo spokesperson.

Yahoo was familiar to job cut over the years. But this is expected to be the large one on terms of slashing the costs. According to sources, the departure of Yahoo Labs head, Raghavan to Google was followed by the expected cuts in his research division. 

Yahoo’s move to sue Facebook over intellectual property has invited a wide range of criticism from people in and around Silicon Valley. Scott is also having a hard time settling the deal to sell most of company’s assets in Asia, following the pressure from investors.