backtop


Print 40 comment(s) - last by omnicronx.. on Oct 6 at 8:37 AM

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".



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

RE: proof
By SiliconAddict on 10/5/2008 3:42:02 PM , Rating: 1
Idiot. If the economy fails we all fail. The two are tied. If the economy fails the government becomes unstable, because it can no longer function.

Socialism is not an evil word. Socialism in its pure state doesn't work. Period. Good concept. Hell I'd say that it very much conforms to what the Bible teaches. However it doesn't work in its pure form.
Capitalism also in its pure state doesn't work as we are seeing. Greed from a corporate, that isn't run by ethics and morals, trumps the good of a society and an individual and as such will fuck over ANYONE in the name of profit.

Hell I would say that a _touch_ of socialism is exactly what this country needs right now. However most Americans are greedy bastards, who don't give a shit about their neighbor or anyone other then themselves. As such people may claim they are patriotic, but at the end of the day they aren't willing to aid their country by aiding their fellow Americans. Because IMHO the heart of America IS the citizen. We make this country great. remember life, liberty, and the persuit of happiness?
You don't need to give everyone a life on a silver platter, but there is NO reason why people shouldn't be given the basics.
EVERYONE. And I do mean everyone deserves a home, clothing, medical care, and a good meal. when a company, be it a bank, or a manufacturer, thinks of the bottom line over its employees I do NOT believe that such concepts incorporate the notion of life, liberty, and the pursuit of happiness. Sure it does for the people invested in said company, but at the expense of the workers. If you think about it this is very much a type of caste system in place. Something I KNOW the founding fathers would be horrified to think is happening in this country.

you say freedom to success or fail based on YOUR actions. There is no YOUR actions in a corporation. there is a collective who's only goal is to make money. And when a company grows large enough to impact all of society there is a point that letting something like that fail is unacceptable when it impacts the whole. Oh and might I add that Fannie and Freddie were setup by FDR through his New Deal initiative, and removed from fed oversight in the 60's and turned into a private corp. Over the years government oversight has been removed because that is the will of the repub party. Because god forbid there is government oversight of a publicly traded company. And here we are. No oversight led to this disaster. Greed to make better profits and put citizens further and further in debt trumped doing what is right for the citizens of this country.

There should be a balance between capitalism, socialism, and several other isms (Other then fascism, which seems to be taking root here.) in the US. The problem is idiots see everything in black and white. A purely capitalistic country would have the government run like a business in the long run. Again though. Businesses don't care about people, they care about profits.


“So far we have not seen a single Android device that does not infringe on our patents." -- Microsoft General Counsel Brad Smith

Related Articles













botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki