Significant Yahoo Layoffs Rumored

Anywhere from 650 to 2,500 employees may be affected

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At a time when people should be decorating their offices in a festive manner, it seems that a large number of Yahoo employees will instead have to carry away their belongings in cardboard boxes.  Multiple sources indicate that Yahoo intends to conduct another round of layoffs in December.

Indeed, it’s almost certain at this point that layoffs will occur.  The big question is how many people will be affected.  Michael Arrington, who broke the story, claimed that 20 percent of Yahoo’s employees – or around 2,500 individuals – will get cut, and he stuck by that figure even after Yahoo called it "misleading and inaccurate."

Kara Swisher, meanwhile, wrote, "[T]he layoffs . . . will be closer to 10 percent and be almost completely centered on the product organization under Chief Product Officer Blake Irving, said sources close to the situation. . . .  That would mean layoffs of about 650, since that part of Yahoo has about 6,500 employees."

So we’ll see what happens.

YahooEither way, though, it looks like the company is preparing to slim down quite a bit.  And although that should save Yahoo some money, investors don’t appear too excited about the idea, given that Yahoo’s stock has fallen 1.58 percent so far today.

In comparison, the Dow and Nasdaq are only down 0.79 percent and 1.03 percent, respectively.

Significant Yahoo Layoffs Rumored
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  • Mike

    A not so great way to make the rest of the employees at Yahoo excited about staying there is firing employees in December.

    Yahoo has never been accused of doing anything right.

    Merry xmas!

  • http://autorepairsavings.blogspot.com/ Spencer

    Why would Yahoo buy Associated Content for 100 million dollars this past Summer?

  • http://planetmeerkat.co.uk The Meerkat

    I know laying people of is rarely a fair thing to do. But if it keeps Yahoo! going I think it’s a good thing. I don’t know where I’d be without Yahoo. It’s the only truly good searchengine. Bing is close but not there yet. I rely on Y!mail, Y!news, Y!images, Y!music, Y!weather and several more. The only Google services I use are Maps(on my phone) and Analytics.

  • http://www.kewltubes.com Diane Gracely

    You gotta do what you gotta do right now with the economy the way it is. If laying off keeps a company afloat, then so be it. The government is telling everyone that we are recovering… YEAH OK, then why is it that no one is spending money right now and buying for Christmas??? Our business did VERY well the past 4 years at Christmas time, this year we are lucky to be receiving 2 orders a week. Down about 90% in sales so far this month compared to the past 4 years. We had a GREAT year this year, don’t get me wrong, but now Christmas is just around the corner and our sales have gone out the window! It’s SAD, alot of people are skipping buying gifts this year. I know that Christmas is not really about the gifts, but this is really going to affect ALOT of businesses. And they have no idea it’s going to be REALLY BAD for sales this Christmas Season… I see it coming. ALOT of businesses won’t survive!

  • http://www.glenwoodfin.com Glen Woodfin

    It always kills me to hear bad news about Yahoo. I’ve used their services for many years and I’ve been happy. I wish they could get in the saddle again.

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