Internet giant Yahoo has announced plans to fire at least 1,500 members of staff as the US company grapples with the current economic climate.

This cut equates to 10% of Yahoo's workforce and is the company's second mass layoff this year.

The search engine recently reported a 64% slump in profits from this time last year - down from £91.1m to £32.5m.

"We are going into what is very clearly a recession mode," said Yahoo's Blake Jorgensen.