WebProNews

The reorganization at Yahoo that resulted in hundreds of layoffs will cost the company millions in related costs.

Sending employees out the door of its California offices triggered mass layoff provisions in the state's labor laws. Yahoo paid laid off workers two month's wages in lieu of the mandated 60-day notice required under law.

The company will share the impact with its shareholders as it accounts for the cost of the layoffs. Yahoo filed an 8-K with the SEC about the charge it will incur:

On January 29, 2008, during its earnings call, Yahoo! Inc. (the "Company") reported that it plans to implement a strategic workforce realignment to more appropriately allocate resources to the Company's key strategic initiatives. The strategic realignment involves investing resources in some areas, reducing resources in others and eliminating some areas of the Company's business that do not support the Company's strategic priorities. The Company began, on February 11, 2008, providing notices to employees whose employment would be terminated as part of the realignment.

In connection with the strategic workforce realignment, the Company expects to incur pre-tax cash charges of $20 million to $25 million for severance pay expenses and related cash expenditures associated with the workforce reductions. Total charges will include these cash charges plus additional charges related to stock compensation expense which the Company is unable to estimate at this time. The Company expects to recognize the majority of the foregoing charges in the first quarter of 2008, with the remaining costs being recognized over the remainder of 2008.

Recruiters have been chasing after the more talented folks let go by the Internet company. In one example, email/social networking software company Xobni tapped ex-Yahoo Messenger VP Jeff Bonforte to take the CEO role at the company.