No surprise. Yahoo expected to announce layoffs

No surprise. Yahoo expected to announce layoffs

Summary: Word leaked out over the weekend that Yahoo is planning layoffs when it reports quarterly earnings on Tuesday afternoon. The exact number of jobs affected is unknown, thought sources told the San Jose Mercury News and Wall Street Journal that it would likely be more than 1,000.

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Word leaked out over the weekend that Yahoo is planning layoffs when it reports quarterly earnings on Tuesday afternoon. The exact number of jobs affected is unknown, thought sources told the San Jose Mercury News and Wall Street Journal that it would likely be more than 1,000. The job cuts reportedly would come from across the company.

The news shouldn't come as any surprise. Last month - on Sept. 24, to be exact - Yahoo said it hired Bain & Co. to help "streamline our processes." The company said at the time that it didn't necessarily mean layoffs but the headlines immediately wanted to know when, not if, the layoffs would come.

How quickly the landscape can change, though. That wasn't 30 days ago and since then:

  • The House of Representatives failed to pass a bailout bill and caused the Dow to plunge a record 777 points on the news.
  • eBay, following on the heels of the slashing of 25,000 jobs at HP, announced a 10 percent workforce reduction for the online auction company.
  • Yahoo shares have fallen more than 32 percent since the Sept. 24 closing price of $19.15. Shares closed Friday at $12.90.
  • A Yahoo-Google ad deal has been put on hold while Washington regulators put it under a closer watch. Could Google be ready to walk?
  • Microsoft CEO Steve Ballmer said at the Gartner Symposium ITxpo last week that Yahoo and Microsoft could still develop a search partnership but that Microsoft is not considering a full acquisition of Yahoo. Earlier this year, Yahoo! rejected Microsoft's takeover offer of $45 billion, or $31 a share.

yahoo chart

Yes, things are tough all over, right? But things look really bad at Yahoo. It wasn't that long ago that investor Carl Icahn agreed to take a few seats on the Yahoo board in exchange for dropping a proxy fight over control of the company. Maybe he should have stuck with the fight and cleaned house.  Newsweek's Dan Lyons asked a question this weekend that I was just asking myself: Why is Jerry Yang still in charge?

Maybe his will be one of the jobs that's cut this week.

Topics: CXO, IT Employment, Social Enterprise

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6 comments
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  • BETTER DAYS

    Downsizing and the associated layoffs can be and usually is very painful for families. We all know the reasons why. For some it will represent the best thing that could have happened for them. Losing a job forces people to review their careers and consider alternatives. Self employment, for one, tends to remove YOUR future and security from OTHER'S hands. Think about other possibilities. www.LikeSoup.com
    LikeSoup
  • M$ is spreading FUD about yahoo

    M$ still hopes to buy yahoo ar a fire sale price.
    We urge the Wall Street to rally behind yahoo and raise its stock at an all time high to prevent a M$ buy.
    Linux Geek
  • RE: M$ is spreading FUD about yahoo

    I was thinking the very same thing!
    How can other companies with similar product be doing so well, but a company that M$ wanted to acquire is suddenly worth so much less?
    mdhemphill
    • Like who?

      What idiotic reasoning. What company hasn't taken a hit in the last stock dropoff? If MS had the power to affect stock prices, they'd
      1) be trying to prop up their own stock price 1st
      2) have gone to this imbecilic "FUD" theory BEFORE they offered $33 a share. Not after.

      If MS could affect stock prices with FUD, they'd be hitting Apple and Google too, and would do so for any company they buy. Of course, no company can do that - only the undeveloped intellects of a pre-pubescent would come up with that (and most of those would be smart enough to avoid moronic theories like this as well.)

      Of course, this camp of conspiracy theorists needs businesses to save Yahoo from MS, because the people like Linux Geek and co. can't do so - they don't have any money and don't believe in paying for anything, so they can't buy stock in Yahoo to protect them from the Evil Empire.

      The best blow against MS would have been FOR the deal to go through. What enemy of MS wouldn't like to take $15+ billion of MS's money and light it on fire, watching it evaporate? That's exactly what would have happened if the original deal had been accepted!

      But if Jerry Yang really believed his own tripe, he'd take some of his own fortune and snap up bags of that deflated Yahoo stock that he feels is worth $37 a share. He'd triple his money! But I don't see him or the other Yahoo leadership buying back tons of Yahoo stock. I wonder why?
      hickum
  • RE: No surprise. Yahoo expected to announce layoffs

    Doesnt surprise me, If you look on their website, you will find most users are upset with their "new and improved profile thing", sounds like a lot more will be opting out of yahoo and moving elsewhere. Somehow they just dont get it.
    Hold on a bit longer can probably pick those share up for $1 at the rate they are going it.
    hitechroadrunner
  • RE: No surprise. Yahoo expected to announce layoffs

    Thank God. Finally these f*kers are taking a hit. I've been praying for the death of Yahoo since they announced their first "business model" change. That was about 2 days after their IPO in 1996. Since then, of course, they've announced a new "business model" about every 15 minutes. What a load of stinking crap is Yahoo. Yes, they have a webmail application that id-jits are attached to. And...? Exactly. Yahoo has never offered anything that you can't get better somewhere else. Unfortunately, their essential value-added is tons of spam and the occasional malware infection. Good Riddance to a bad company!!
    kfestus