Pink will be the order of the day Wednesday as an expected 10% of Yahoo employees are expected to receive pink slips notifying them that they are being let go. The possibility of layoffs was first announced in an Email that employees received in late October.

In the Email that Jerry Yang sent out it is stated that the layoffs would happen before Thanksgiving; and since we are already past that date many employees were breathing a sigh of relief, thinking that they had dodged the layoff bullet, only to find out now that the process of determining who to let go ran a bit longer than expected, but the layoffs are still coming.

According to our sources, the notification of layoffs should start hitting early Wednesday morning and the reductions will be across the board, meaning that all departments will be affected. Yahoo employees that are left might want to brace for more cut, as it is suggested that at least an additional 500 positions will be slashed through attrition and the current hiring freeze.

Yahoo is really in the same boat as many other tech companies who are in the process of battening down the hatches to deal with the current economy situation, as their revenues are either down or are in fact bleeding red ink. We have no reason to believe that this trend will not continue in the tech sector as companies look for ways to handle the slowdown in the economy, and cutting staff is one of the best ways to at least make things look better on paper.