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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 foolsgambit11 on 10/5/2008 6:51:58 PM , Rating: 2
You can be doing well and still want to do better, either personally or as a society. Maybe the reason Gore and Kerry (and now Obama) had essentially the same message is because there's a large portion of the population who feel that there are some things we could do better on as a nation. They expect greatness of America, and are disappointed when we fall short in certain areas. Maybe instead of rephrasing the Phil Gramm 'nation of whiners' critique, you could give specific examples of Democratic platform or policy you disagree with. You know, something constructive. Because as it stands now, there are major items of Republican policy (deregulation (blame falls to a lesser extent, but still some, on Democrats as well), War On Terror handling, the existence of the War On Terror, the loss of American respectability in the world, Iran non-proliferation, &c.) which lend themselves to trying another direction, just because we know the current direction isn't working too well. So without even getting into the specifics of Obama's policy suggestions on these topics, I've given an argument for change - change on topics where McCain is fundamentally in line with Bush doctrine.

Now, to my own non-constructive comment (which I swear is satire, thereby elevating it to the level of constructive comment by demonstrating the non-constructivity of your comment):

McPalin (to play your 'toy with names because that somehow discredits their policy ideas' game) plays the same game, though. They play to people who only see bad things on the horizon. It just depends on what you see on the horizon. Do you see turban-clad, freedom-hating fanatics clutching hands with baby-killing, Jesus-hating tree huggers and baby-making, job-stealing border jumpers on the horizon? Vote McPalin!

“Then they pop up and say ‘Hello, surprise! Give us your money or we will shut you down!' Screw them. Seriously, screw them. You can quote me on that.” -- Newegg Chief Legal Officer Lee Cheng referencing patent trolls
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