Yahoo has said it is laying off 15 percent of its workforce as part of an "aggressive strategic plan" to return to profitability.
The job cuts were announced after the struggling Internet pioneer reported a a $4.3bn loss for the quarter.
"This is a strong plan calling for bold shifts in products and in resources," chief executive Marissa Mayer said.
Mayer, who joined Yahoo in 2012 from Google, said the plan will "dramatically brighten our future and improve our competitiveness, and attractiveness to users, advertisers, and partners."
Some key features of the strategic plan are closing offices in five locations, paring down products, shifting more resources to mobile search and selling some non-strategic assets such as real estate and patents.
That will leave three main consumer-focused platforms -- Search, Mail and Tumblr, and four "digital content strongholds" in the form of News, Sports, Finance and Lifestyle, Reuters reported.
Shareholders, however, were not impressed with the direction, with Yahoo shares falling 1.2 percent after hours, making the 12-month erosion in value a whopping 36 percent.
The 'strategic alternatives' plan is a strong sign that Mayer and the board may be willing to sell the struggling Internet business - websites, email and online search, Reuters reported.
"We believe the strategic plan does not fully address the core issues which have destroyed shareholder value - poor capital allocation, bad strategic partnerships, out of control spending and a bloated workforce," major shareholder New York-based SpringOwl Asset Management said, Reuters reported.