US internet firm Yahoo! says it is cutting roughly 2000 jobs as it seeks to build a "smaller, nimbler, more profitable" company and reduce costs.

"We are intensifying our efforts on our core businesses and redeploying resources to our most urgent priorities. Our goal is to get back to our core purpose - putting our users and advertisers first - and we are moving aggressively to achieve that goal," Scott Thompson, chief executive of Yahoo!, said.

The struggling internet pioneer announced a restructuring to focus on a "select" group of core businesses and the platforms that support them.

A key focus will be the data that drives "deep" personalisation for users and return on investment for advertisers, the Sunnyvale, California-based company said.

"Today's actions are an important next step toward a bold, new Yahoo! - smaller, nimbler, more profitable and better equipped to innovate as fast as our customers and our industry require," Mr Thompson said.

The company said it would notify approximately 2000 people that their jobs have been eliminated or would be in the future. It gave no details on the timing of the layoffs.

Yahoo! said it expects the workforce reduction will produce about $US375 million ($A364 million) in annualised savings.

"With a clear focus on profitability and growth, the company will be disciplined in its investments and radically simplify how it builds, launches and maintains many of its properties and products," it said.