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Could more layoffs be in store for Yahoo?

It's no secret that Yahoo is in trouble.  With shares falling to a five-year low, and no word yet on whether the new Google advertising pact will withstand regulation scrutiny, Yahoo is surveying its limited options.

Earlier this year, Yahoo cut 1,000 jobs, or roughly 7 percent of its workforce.  Analysts are calling for Yahoo to cut deeper into its company to try to regain competitiveness.  Analyst Henry Blodget suggested Yahoo fire 3,018 employees, more than 20 percent of its current workforce.

While Yahoo is unlikely to fire this many employees, sources close to Yahoo say cuts are coming.  According to a Silicon Alley Insider report, sources state that Yahoo is mulling over a new round of job cuts.  The cuts would be less than 20 percent, but significant.  The site describes, "While our Henry Blodget has called on Yahoo to can 3,018 people (that's more than 20 percent of the workforce), the odds that Yahoo will make cuts on that scale are very low, we're told by people familiar with the company's thinking. But we're also told that another round of layoffs are indeed on the drawing board, prompted by a grim financial forecast."

The cuts may be announced after the third quarter results are predicted October 21.  The report is expected to be mixed at best, and may further damage Yahoo's already unstable stock value.

Also bad news for Yahoo is that Sen. Herb Kohl, chairman of the congressional subcommittee on antitrust, competition policy and consumer rights, is pushing the U.S. Department of Justice to examine the Google-Yahoo partnership closely for possible antitrust violations.  He sent the DOJ's head a letter Thursday with this request.  If the DOJ were to rule that Yahoo could not continue in the pact, it would be devastating, as the deal is really one of the only pieces of good news for the company lately.

Kohl's antitrust committee held its own review of the merger.  While its findings were inconclusive, the committee frowned on the deal.  In Sen. Kohl's letter he states:

The parties assert the transaction is in the advertisers' best interests since it will create a more efficient marketplace.

While we have conducted a careful review of this transaction, we do not have the benefit of the confidential business information supplied by the companies to the Department nor the economic models necessary to predict consumer behavior...nonetheless, we conclude that important competition issues are raised by this transaction. Should the amount of advertising outsourced by Yahoo to Google grow significantly, we believe the threat to competition will also increase.

The partnership is currently in its final stage of approval by the U.S. Department of Justice.  The DOJ may block the deal entirely, or it could only allow it to proceed with strict conditions -- so called "remedies".

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RE: proof
By BansheeX on 10/4/2008 3:55:38 PM , Rating: 2
The simple truth? A pure capitalist or pure communist society cannot exist. Corruption prevails and the foundation of the society crumbles. There has to be a balance and right now the scales are teetering back and forth, with a mix of capitalist and communist ideologies and a heavy sprinkle of corruption. And the sad part? There aren't many other better places to be living in. Welcome to the American Dream.

They can exist, but they can't exist for long. Although people realize this, they are consistently wrong about the balance itself. Societies with small governments are indeed rare throughout history. The only thing keeping a government from getting more and more pervasive in the markets is the will of the majority, and a constitution (until politicians realize they can ignore it with impunity). What's weird is, the majority of Americans opposed the bailout, but the majority of their representatives voted for it. Democracy is not a very effective system either, it turns out. Get a lot of money, join a major party, get on a podium, make some motivational speeches, and you're in. Even if you suck, you've got a good chance because a lot of people refuse to vote for anyone not in the two major parties. They still vote for people who subsidize, they still vote for people who want income taxes and special tax credits borne of them, they still want inflationary money. They're clueless, they're voting for collusive enablements over and over again. Hell, you have to fail a test in basic economics to get an economics degree in this country. Why do you think all these people with doctorates in economics couldn't see or prevent all this crap from happening? Because they're all taught the equivalent of astrology instead of astronomy. When inflation filtered into real estate after the tech stock bubble burst, nobody but Mises-type guys like Schiff saw it because the inflaters who are calculating inflation exclude many products from inflation calculations to understate how much they're doing it. Food, fuel, and houses, for example. They even categorize inflation as if the products themselves are causing it. In reality, dollars created at no labor or material value can raise prices anywhere, and shift between them to create devastating booms and busts. It should be obvious, but to idiots like Swonk, they're completely oblivious into thinking its real labor-backed demand.

RE: proof
By foolsgambit11 on 10/5/2008 7:03:47 PM , Rating: 2
What's weird is, the majority of Americans opposed the bailout, but the majority of their representatives voted for it. Democracy is not a very effective system either, it turns out.

Democracy can be effective. But it's unwieldy in large or dispersed populations. That's why we don't have democracy. We have a republic. What is more, we have a republic where the founding fathers specifically wanted a system that would insulate the legislative body from the whims of the mob. Now whether you think our representatives are voting as they do because they are more knowledgable than the average person on these matters or because they are corrupt and out of touch with America is a matter of opinion. An opinion that is difficult to separate from whether they voted the way you would have, admittedly, but an opinion that in any case says little about how well the government functions. Evaluating how well a government functions is about results, not intention. So until we know the results of the bailout, we should withhold judgement.

"Death Is Very Likely The Single Best Invention Of Life" -- Steve Jobs
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