There will be no layoffs at Yahoo, according to company spokesman Brian Williams, who dismissed rumors of trouble at the slumping internet giant as "speculation."

"We've talked about watching our costs, we certainly haven't said anything about job reductions," said Williams.

Yahoo, which has had a tough year after fighting off a takeover bid from rival Microsoft, has been hit by declines in its display business.

While display has been lagging for some time now, recent U.S. economic woes have accelerated a decline in display advertising.

Earlier this week, Yahoo unveiled a new display advertising platform designed to streamline the buying process. However, early reviews of the APT platform have been disappointing.