April 15, 2009

Yahoo Plans For More Layoffs

Yahoo Inc is preparing for another round of staff cuts, according to reports from The Wall Street Journal and The New York Times.

The layoffs would mark the third round of cuts over the past 14 months, and the first round to take place since Carol Bartz became chief executive of the company in January.

Layoffs could be realized by as soon as next Tuesday, when Yahoo will report its first-quarter sales figures, anonymous sources informed the Wall Street Journal.

The job cuts could include "several hundred employees company-wide" in addition to the 2,400 released in 2008.

The company ended last year with 13,600 employees, according to the Wall Street Journal.

Sunnyvale, California-based Yahoo has struggled to stay afloat in the face of Google Inc, its most powerful rival, and amidst a weakening economy.

"Despite its huge online audience of roughly 500 million people worldwide, it also missed the opportunity to acquire fast growing social Web sites, like YouTube or Facebook, which have become a magnet, especially with younger users," said the New York Times.

Before Bartz took over, former chief executive Jerry Yang eliminated 1,000 workers in February 2008, but expanded the payroll just a few months later.

"If you look at the changing economic environment and the changing leadership, it is not surprising that you would see further cuts at the company," Scott Kessler, a stock analyst with Standard & Poor's, told the NYT.

Image Courtesy UPI


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