Yahoo (YHOO) is reportedly planning a massive restructuring that may include thousands of layoffs as the struggling media company that was once at the pinnacle of Silicon Valley's boom looks to regain its footing. 

The Sunnyvale-based company is working with Boston Consulting Group on the changes that could be announced by the end of March, according to a report Monday by All Things Digital, a subsidiary of Dow Jones, which is controlled by News Corp. (NWSA), the parent of FOX Business Network. 

The transition, which may include another senior-executive level shakeup, will mainly affect its large products group, the report said, and may also impact "public relations and marketing, research, marginal businesses and weaker regional efforts." 

A Boston Consulting Group spokesperson said "as a matter of policy, BCG does not comment on its work with companies," while Yahoo did not immediately respond to a request for comment.

Yahoo's net income slumped 5%, while its GAAP revenue slid 13%, in the fourth quarter of 2011 on a year-to-year basis as it struggled to define a strategy. Yahoo has seen increased competition in the search and lucrative advertising space from companies like Google (GOOG) and Microsoft (MSFT) as well as smaller players.

"In 2012 we will be aligning resources behind key areas of focus to enable us to move aggressively in market and grow our business, bringing innovative new products and experiences to both our users and advertisers," Yahoo chief executive Scott Thompson said at the time.

The company hired Thompson to the top spot in January after firing Carol Bartz from in September the year earlier.Â