Amidst growing rumors of thousands of layoffs being planned to take place at Yahoo this month, a spokeswoman for Yahoo refused to confirm anything beyond saying, “As we have indicated, 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,”

To some that just indicates that it has already been decided that heads are to roll, but the list is still being populated.

While Yahoo remains a profitable company, its market share has been shrinking rapidly against competition from Google and Facebook and other online companies.

According to industry sources, CEO Scott Thompson is close to announcing thousands of layoffs in the next weeks. In the company’s recent announcement of earnings Thompson said, “We’ll consider revenue streams that look different from what we’re doing today … As a result, there will be some things that we stop doing.”

At present, Yahoo has about fourteen thousand employees worldwide. On Monday, Bloomberg News reported that Yahoo is considering major layoffs and that it had been confirmed by “a person familiar with the matter.”

Big layoffs would affect the workforce of Yahoo at Sunnyvale.

Recently Yahoo had announced that five of its longtime directors would step down. The headcount included co-founder of Yahoo Jerry Yang and Chairman Roy Bostock. However Daniel Loeb, whose firm Third Point controls 5.6 percent stock in Yahoo has announced that he has no confidence in the remaining board members and would run his own four candidates for Yahoo’s board.

Industry sources say big changes at Yahoo are inevitable and unavoidable as the company failed to remain in sync with new modes of information technology including developments in the fields of mobile and social networking platforms.

At least two news reports on Monday claimed that Yahoo is on the verge of announcing layoffs, though none confirmed sources. According to reports cuts are slated for marketing, research, products and less successful ventures of Yahoo.