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Yahoo plans huge job cuts

Source: PTI
January 22, 2008 11:28 IST
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Yahoo Inc plans to cut hundreds of jobs as part of an effort to refocus its faltering business and boost its sagging stocks.

Job cuts are expected to number around 500, out of 14,000 employees globally, although their precise locations have yet to be finalised, media report said.

The layoffs would mark the most aggressive step yet by Yahoo CEO Jerry Yang, who began a reorganisation to revive the company's fortunes after taking over from movie studio mogul Terry Semel in June 2007, the San Francisco Chronicle reported on Monday.

The cuts could be announced during the company's fourth quarter earnings report on January 29 along with some more information about the company's ongoing reorganisation.

Besides falling further behind its old rival Google Inc in the lucrative Internet search and advertising market, Yahoo also has been losing web surfers to new competition from social networking sites Facebook and MySpace.

Over the past two years, Yahoo stock has dropped 40 per cent during that period to USD 20.78, their lowest point in more than four years, making it a perpetual target of take over rumours.

With Yahoo stocks dropping, Yahoo co-founder Yang has been under intense pressure from Wall Street investors to get rid of under performing units, in an effort to improve profits and its sagging stocks. Since Yang became CEO, Yahoo's stock price has declined by 25 per cent while Google shares have surged by more than 15 per cent.

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