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Middle management may suffer the unkindest cut of all, if a rumored layoff of upwards of 1,500 people takes place.

The numbers could go as high as 2,500 should Yahoo CEO Jerry Yang sign off on a reputed plan to deflate Yahoo's employment rolls.

Wall Street would be delighted to see Yahoo take that course. When the now-famous Peanut Butter memo leaked, Yahoo executive Brad Garlinghouse said in it Yahoo suffered from a lack of decisiveness, among other things.

Silicon Alley Insider cited a tipster in disclosing the likelihood of layoffs taking place ahead of next week's earnings announcement. "Management by committee does not work," the report said, with Yahoo's moribund stock price likely a result.

A response from Yahoo appeared at paidContent, which suggested the job cuts may happen in Europe.

"Yahoo! plans to invest in some areas, reduce emphasis in others, and eliminate some areas of the business that don’t support the Company’s priorities," Yahoo's response said.

If the layoffs do take place, they should help Yang's image, as he's long reputed to be a nice guy who shies away from the ugly decisions like these. Kicking a bunch of Yahoos to the curb would help change how investors, especially the big institutional ones, think of the CEO.