In its biggest round of job cuts since the dot-com crash, Yahoo is planning to cut 1,000 jobs - or about 7% of its staff - in an effort to streamline their operations after reporting that its fourth quarter profit was down 23 percent.

For the past few years the company has been struggling to keep up with Google, whose lead in internet search and advertising continues to grow. Yahoo, on the other hand, in its attempt to amass a huge audience, has become overextended with a handful of unsuccessful services and is now looking to refocus on four key groups: search, internet publishers, advertisers and developers.

The company said it would take a charge of between $20 and $25 million to pay for costs associated with the layoffs, which along with other cost-cutting measures are expected to reduce its annual expenses by over $100 million.