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Layoffs Expected at Yahoo

Many people hope CEO Jerry Yang and the board are among them
By Maureen O'Gara
Article Rating:
October 21, 2008 10:00 AM EDT
Reads:
 1,693

Yahoo's self-inflicted agony is supposed to result in a terminations announcement tomorrow when the company posts its presumably weak Q3 results, according to multiple reports.

It's got around 14,300 employees. Expectations are that it will lose at least 1,000-1,500 of them before the end of the year to match its cost-cutting targets. Many people hope CEO Jerry Yang and the board are among them.

The Wall Street Journal says some managers have been told to cut their operating budgets by 15% and hiring is reportedly glacier.

Last week Valleywag speculated Yahoo would cut 3,000-3,500 jobs.

Yahoo announced in January that it was cutting a 1,000 people but then hired others and it's been suffering something of a brain drain since.

Yahoo stock closed at $12.86 today, up from $11 a change last week (and to think it could have gotten $33 from Microsoft) - so much for going it alone.

The company is supposed to be trying to negotiate a takeover of AOL, with Time Warner taking a minority position. Google owns 5% of AOL.

Yahoo and Google are also trying to persuade the Justice Department to let them go ahead with their revenue-sharing agreement, which is projected to bring Yahoo $800 million year-one - at least it was before the economy fell apart.

Published October 21, 2008 – Reads 1,693
Copyright © 2008 SYS-CON Media, Inc. — All Rights Reserved.
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More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025.

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