Big Lay-off For Yahoo Staff
Posted Tuesday 22nd January 2008 by Swapna in SEM News.
Internet giant Yahoo is set to make huge staff cut backs, in response to the recent dotcom crash. Investors have shown concerns over the company, claiming that they need to improve profitability and become more strategically focussed. The big cutback is expected to happen on Tuesday 29th January to staff in low priority positions, after the 2008 tight budget of its earnings are announced.
Co-founder Jerry Yang, who replaced Terry Semel as Chief Executive, has since laid out key points to better improve its competitiveness and company’s performance against their archrival Google. Yang focussed on personalising the service to better appeal to consumers and advertisers; concentrate on fast internal decision-making and create an open development plan.
The workforce grew from 2 600 to 14,000 in 2007, leaving others to estimate a cutback of over 2,500 members of staff. However, inside sources has revealed that the numbers will be in the hundreds, which is still the highest number of cutbacks in a firm since the dotcom crash. Industry experts have further stated that though Yahoo has the great potential within Web3.0, because of its reach into property and recruitment, there are still flaws in the way advertisers and publishers are organised under different executives.
Sramana Mitra, consultant and entrepreneur had written on the GigaOm blog, “They should put each vertical – soup-to-nuts – under a separate GM, one who is accountable for all three aspects of the vertical and owns the P&L. This would fix a lot of the cultural problems and finger-pointing for which Yahoo has lately become infamous.”
The company has however stated that though they will be making the biggest number of cutbacks, they will need to make tough decisions in order to help the company grow.
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