Yahoo! said Thursday that a report by a leading Silicon Valley technology blog that it is preparing to cut its staff by 20 percent is "misleading and inaccurate."

"Yahoo! is always evaluating expenses to align with the company's financial goals," Yahoo! said.

"However, a 20 percent reduction in Yahoo's workforce across the board is misleading and inaccurate," the Sunnyvale, California-based Internet company said in a statement.

Yahoo! issued the statement after technology blog TechCrunch reported that it is preparing to lay off one-fifth of its approximately 14,000 employees

All Things Digital, a technology blog owned by Dow Jones, also reported that Yahoo! was preparing layoffs but said the figure is "closer to 10 percent."

All Things Digital said the job cuts will take place in December and will be "almost completely centered on the product organization."

Yahoo! has been the subject of a series of takeover rumors recently with AOL and the private equity giant KKR cited as potential buyers.

Yahoo! chief executive Carol Bartz has been seeking to carve out an identity for Yahoo! as it struggles to compete with Google and Facebook but the firm's share price has been largely stagnant since she took over nearly two years ago.

Yahoo! shares shed 0.83 percent on Wall Street on Thursday to close at 16.80 dollars.