Friday, January 25, 2008

Troubled Yahoo to layoff 5% of staff


No yahoos or hoorays in Yahoo! these days for the reorganization headed by CEO Jerry Yang will result to job cuts of 500 to 700 people or 5% of the Internet company’s 14,000-workforce.

According to Financial Times, sources have confirmed these redundancies will be announced in the forthcoming 4th quarter earnings report. Yahoo has experienced declining profits in the last 7 quarters due to the worsening economic condition and tight competition against the seemingly formidable Google as well as sensational startups such as Facebook and MySpace.

Yahoo! stated it must make “tough decisions about the business to help the company grow”, focus efforts in priority areas and let go of other non-essential initiatives.

Despite these layoffs, Yahoo confirms it will still hire people in core areas of its business. Now, the thrust is to make Yahoo! Mail as the starting point of the Internet among its 500 million users scattered around the globe.

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