Yahoo to cut 5% of its staff in a layoff targeting its product group

Yahoo

A report out of the NY Times Bits blog suggests Yahoo may be planning layoffs as early as Tuesday, December 14th. The anonymous source claims Yahoo may be planning to cut up to 5% of its staff. This figure is less than the 10% and 20% previously rumored by Cnet and TechCrunch in early November. Yahoo currently employs about 14,000 employees and is expected to layoff 650 employees in a cutback that targets its product division. The product division is under the direction of ex-Microsoft executive Blake Irving. Irving was the former corporate Vice President of Microsoft's Windows Live Platform group before he left his position in 2007 to pursue personal interests. He assumed this lead role at Yahoo in April 2010 and reports directly to Yahoo CEO Carol Bartz.

These layoffs may be a response to an increasing amount of pressure placed on Bartz by investors. The CEO is under the gun to improve the performance of Yahoo, which has remained flat since she took the reigns of the company in early 2009. Recent rumors suggest AOL may be looking to merge with Yahoo, but this deal is still in the very early stages of negotiation. AOL has reportedly approached Bank of America regarding this investment, but has yet to approach Yahoo. In the end, Yahoo needs to do something to keep it from sliding into oblivion. The once-powerful search engine is now gone and the struggling company must find a new direction before a bigger company scoops it up and spins off its valuable web properties like Flickr, Yahoo Mail, and del.icio.us.

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20 Comments

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It's good in a way. A smaller company can share info with each other faster and get things done faster and more efficiently than a large entity.

IMHO :i think that most of the Yahoo owners (or at least who is in charge) are also Google (or Microsoft) owner so, they are trying to kill slowly Yahoo because there is not point to have a redundant service.

Or may be they are speculating, killing Yahoo to increase the profit then later, creating a new (and "innovator") service and slowly killing Google, rinse and repeat.

It's ok.

I think every company should lay off 5% of its staff every year. This way you keep only the best and brightest in your organization and let the shitpumps that are only around for a paycheck off to greener pastures.

dotf said,
It's ok.

I think every company should lay off 5% of its staff every year. This way you keep only the best and brightest in your organization and let the shitpumps that are only around for a paycheck off to greener pastures.

Question :how to determine who is the best personal (and who's not) in a business?.

And if it is possible (tips:it is not, at least for a corporation) then, is it possible to determine who is a good personal before the hire?

Magallanes said,
Question :how to determine who is the best personal (and who's not) in a business?.

And if it is possible (tips:it is not, at least for a corporation) then, is it possible to determine who is a good personal before the hire?

Are you referring to 'personel' in your question?
That changes the whole framing of your question to something that makes sense.

When you see a company making multiple rounds of layoffs and not really making any progress in the mean time you know they're toast. Carol Bartz is a good business woman, but I think it's clear by now she's not a visionary.

Too bad. We need all the competition we can get in this market, so that it won't just end up with Google, Facebook, and Microsoft as the big players. And I would hate to see Yahoo selling off Flickr. Let's hope they can find new avenues for their web services. I'm afraid they have to look at different markets than search and social networks though.

Yahoo are so s-l-o-w to develop their products. One of the reasons I dumped 'em. Some of their stuff still looks like the 90s.

zkid2010 said,
Oh snap, and right before Christmas.

They need to layoff all these people before the bonus payment which is happen to be around Christmas.

Jebadiah said,
Capitalism doesn't care for Christmas.

In fact, they care.

The fires is done in pre-xmas because it was studied that it is the best date because:
a) in xmas, everybody can forget easily past-events.
b) it is before the annual balance.

Recon415 said,

Communism disregards it completely.

Well, depend. In my country is not strange to find a commie priest (catholic).

Communism is about community, but it also was derived (or was a excuse) to justify a military-dictatorship (Russia, China, Cuba for example), not so different to a fascist regime. Then, while the fascism is the opposite of communism but when both are applied in extreme ways, both display the same behavior.