breaking – During Yahoo earnings release conference call executives announced the company will lay off 1,000 workers. |
Ouch, I feel sorry for anyone working at Yahoo! right now. |
Is it an indication of any big recession in web technologies ?? |
Rohit – I dont thinks so..specially for an ecosystem that is dependent on Ad's as their major source of revenue. The issue with YHOO (IMHO), is that the business model does not have the same velocity as their main competation. Thereby, lossing ground take a look at ad expenditure by the market space vs GDP
I post here a pointer here
http://blogoscoped.com/forum/121953.html#id121953 |
<< The Sunnyvale-based company disclosed the upcoming 7 percent reduction in its 14,300-employee work force Tuesday while reviewing a 23 percent drop in fourth-quarter profit and a cautious 2008 outlook. The bad news sent Yahoo shares skidding to their lowest levels in more than four years. >>
http://news.yahoo.com/s/ap/20080130/ap_on_hi_te/earns_yahoo;_ylt=AsYs3.J6j14n8cZsNDBrqI8jtBAF |
I know it says "Yahoo didn't specify which areas of its operations will be trimmed..." but does anyone have an idea who goes first? Todays announcement raises another interesting question, would Google or Microsoft try to buy Yahoo and if so would "monopoly" be an issue? |
Oh Yeah, is lay off in US or Yahoo Asia offices (India,Malaysia). There are so many people recruited in India Bangalore as advertisement executives.
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http://valleywag.com/350231/yahoo-all+hands-wednesday-at-930-am
All hands 930am PT Wednesday. I don't expect it to be fun. On a side note, I took a mini-tour of the Sunnyvale campus last summer---really nice facility. |
The line "Management indicated some employees whose current jobs are eliminated may be offered new assignments in other parts of the company"
to be interpreted differently
"Management indicated some employees whose current jobs are eliminated and will be assigment in other parts of Yahoo asia offices".
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[Moved from "Yahoo! cuts 1000 jobs to 'invest in future'" – Tony]
From the recent San Jose Mercury News article:
" Yahoo announced plans to cut 1,000 jobs Tuesday – its largest layoff since the dot-com bust – as the economic slowdown and fierce competition from Google buffeted its Internet advertising business.
Yahoo, founded by Stanford University students Jerry Yang and David Filo, was once a high-flying Internet darling, but has struggled in recent years as Google revolutionized the search-advertising business.
--clip--
And later:
Yang said he was optimistic about the future. "We are not tinkering around the edges," Yang told analysts Tuesday afternoon. "We are making significant, and what we believe are game-changing, investments in Yahoo's future.""
Link:
http://www.mercurynews.com/business/ci_8116574
The coverage of InformationWeek:
Yahoo Profits Fall 23%, Cuts 1,000 Jobs
http://www.informationweek.com/news/showArticle.jhtml?articleID=205921417 |
paul has nice insight on the valuation trap
http://paul.kedrosky.com/archives/2008/01/30/yahoo_a_valuati.html |
BTW, Due to term 'YHOO' in this thread the Blogoscoped system doesn't recognized my duplicate post! ;) |
