The financial situation at the Internet company is becoming “increasingly dire,” Recode said, citing some pages from the “book” that Yahoo bankers have given out to prospective buyers.

Yahoo also expects the employee count to fall to about 9,000 at the end of 2016 from 10,500 in 2015, but stock-based compensation remains steady, the technology news website added.

The company expects revenues, backing out traffic acquisition costs, to decline to $3.5 billion in 2016, Re/code said.

Yahoo (YHOO) could not be immediately reached for a comment.