Yahoo is preparing to lay off 20% of total staff, we’ve heard from two independent sources, and managers have been asked to begin to make the tough decisions on who stays and who goes. This news comes just days after Google announced a 10% pay raise and $1,000 spot bonus for all employees. This is a story we’ve been tracking down for weeks.

At the end of 2009 Yahoo had nearly 14,000 employees, and they currently have 14,100 employees. There have been layoffs in this last year, as well as new hiring, but a 20% hit suggests 2,500 people or more will shortly be out of a job. As we reported in September, the company will likely be hiring additional employees in Bangalore and other locations to handle some development and operational jobs being cut in the U.S.