Sources have revealed to the Wall Street Journal that Yahoo! will announce layoffs when they reveal their quarterly earnings tomorrow. The exact number of jobs affected isn’t know but is estimated to be at least 1,000. The move isn’t much of a surprise, however. Last month they hired a consulting firm to help them streamline their operations.

The company, which once boasted the top search engine on the net, has been struggling as of late. Its shares have fallen 32% over the past month, its deal with Google was put on hold due to an FTC investigation, and earlier this year they rejected a takeover bid by Microsoft. Shares entered the week at $12.90 after hitting a 5-year low of $11.37 last week. Microsoft takeover bid was for $33 a share.

Yahoo is making good on its promises to overhaul their site into a better, more accessible version of what it is now. It’s looking to make the main page into something of a cross-breed between the MyYahoo page and the current main page. It will essentially try to act as even more of a hub of your web browsing, with the ability to add bookmarks and web services like Gmail to the sidebar. You apparently won’t even need to leave Yahoo to view the content of some of these pages, though it isn’t outlined how that’s possible. Yahoo will also implement a system they call “Content Optimization Knowledge Engine” (hopefully COKE for short) that will be able to recommend sites to users based on past web activity.