Yahoo May Be Readying Its Largest Layoff Ever

Yahoo could be gearing up for its biggest layoff ever. All Things D says new CEO  Scott Thompson is working on a reorganization that could hit the company’s products organization, PR and marketing, research, and regional efforts. Writes Kara Swisher:

In Yahoo’s core business, Thompson appears to be looking widely across Yahoo in order to jumpstart what has largely been a failed turnaround for the company under previous leadership.

That is likely to include a much deeper and significant paring of its many businesses, while also seeking out new ones to move into.

One manager said cuts will be “deep,” and that units will have to demonstrate either substantial savings or clear paths to higher revenue. Meanwhile, an independent source tells me that a number of Yahoo managers are exiting or looking for new opportunities.

The company’s media business may be left largely alone for now, notes Jeff Bercovici at Forbes. Media’s not on Swisher’s list of possible targets, and the company’s “reportedly angling to secure the rights to broadcast the 2014 Winter Olympics and 2016 Summer Olympics in Canada,” Bercovici.

The layoffs could be announced late this month.

Updated 2:30 to add information from independent source.

No Responses to “Yahoo May Be Readying Its Largest Layoff Ever”

  1. The “obvious” (and rhetorical) question to ask is: after the reduction in expenses from layoffs, who will be left and will the big cheeses take a significant paycut in order to further reduce expenses? Will they refuse large bonuses, etc. if/when the company is turned around? I can state with 95% confidence I know the answer; it is good to be king.

  2. uh-oh!

    Not surprising. This company has been mismanaged for the last several years. I feel bad for the people who work there, but tech hiring is average to gang-busters depending on the market. And don’t blame this on outsourcing. Outsourcing has been going on for 15 years now. You just need to provide better value than a temp in India and you’ll have work.

  3. Conrad

    …and the tech bubble keeps on bursting! Where is R& D when you need them. Negative press is very hard to over come in the long run guys. Is there any way we can find people who can run a company effectively so as not to lose American ingenuity and jobs?