For a long time if you wanted to find something online you went to Google,
Yahoo or MSN. There are some smaller search players out there, but these are
the big three. Yahoo is now lagging well behind Google in the search business
leading to dropping stock prices and calls for layoffs by analysts.
A source close to Yahoo claims it is considering cutbacks that will lead to layoffs
for hundreds of Yahoo employees. The Silicon Alley Insider blog
posted that Yahoo is considering cutting 1,500 to 2,000 jobs within the next
two weeks. Yahoo spokesperson Diana Wong declined to comment on either force
A Yahoo insider told Reuters that the job cuts would be announced on
January 29, 2008 when Yahoo reports its year end results. Yahoo currently
employs around 14,000 people compared to 11,600 for the previous year.
Analyst Jeffrey Lindsay from Sanford C. Bernstein called for Yahoo to cut
15-20% of its workforce to bring stock prices back up.
Yahoo co-founder and CEO Jerry Yang told Reuters that the company is
focusing on three main areas including making Yahoo the starting point for more
Internet users, making its ads must buys for advertisers and opening its sites
up to outside developers. Reuters’ source says that the job cuts will
focus on anything that doesn’t help Yahoo focus on its three main areas.
DailyTech reported earlier this month on some of the other changes
Yahoo plans to make during 2008.