After seven months as chief executive, Yahoo Inc. co-founder Jerry Yang has concluded hundreds of employees will have to be fired to help the slumping Internet icon recover from years of misguided management.

The Sunnyvale-based company's biggest purge since the dot-com bust most likely will be announced next week ...

Securities analysts are betting Yahoo will trim its 14,000-employee payroll by about 5 percent — or 700 workers. If that many people are dumped, Yahoo could save about $100 million ...

In a statement, Yahoo said it is embarking on a muliti-year transformation aimed at enriching long-term shareholders.