Yahoo plans layoffs: company’s future in question
One of the top three search engine giants may be in some hot water. Sometime this week, Yahoo is expected to announce cost-cutting plans, which could entail a massive layoff at the company. Layoffs are estimated to be as high as a thousand employees.
According to CNet, Yahoo, during its third-quarter earnings meeting on Tuesday, asked managers to identify where reductions could be made in their operating budget. Yahoo currently houses 14,300 employees and near the beginning of the year 1,100 employees were laid-off in an attempt to cut costs.
Apparently, rumors have been circulating in regards to Yahoo’s plans to layoff more employees to cut costs. According to CNet, Yahoo’s stock fell as low as $11.37 per share last week. As the result of Yahoo’s stock woes, it’s current market cap is estimated to be $17.88 billion. Ironically, Microsoft offered to buyout Yahoo for $45.5 billion previously. Executives at Yahoo may be kicking themselves right about now for not pushing the deal completely through.
Many tech companies are affected by the current financial situation, but according to analysts, Yahoo seems to be taking the worst beating out of most of them. Layoffs are usually last resort measures and the fact that Yahoo is cutting jobs so frequently maybe a troubling sign for the company.
I wouldn’t be too surprised if Yahoo executives rethink about pursuing a buyout option. Even if Microsoft buys out the company, it would still be an uphill challenge for them. Considering Microsoft’s own search engine, there is no certainty Yahoo would thrive in Microsoft’s hands.
We will just have to wait and see what kind of announcements Yahoo makes this week in regards to its cost-cutting plans. If Yahoo’s stock plummets any lower, then the company may have to take even more drastic measures.
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October 20th, 2008
Yahoo Execs are to stupid to kick themselves.
Bunch of brain dead idiots