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Yahoo Cutting 3,500 Jobs?

With no severance? Whaaaaaaa?

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If a recent leak of information is true, Yahoo CEO Jerry Yang and board chairman Roy Bostock are looking worse and worse. Remember all that grandstanding last spring about employee severances and retention packages when Microsoft’s offer to buy was still on the table?

Remember the nasty letters between Carl Icahn and Bostock about that and how Bostock seemed to be looking out for employees and Icahn said it was just a poison pill to add a couple of billion to the price tag and dissuade Microsoft?

‘Member?

Yeah, well, Valleywag credits and inside finance source at Yahoo with a tip that the company plans to layoff 3,500 employees—and is eliminating severance packages.

Sounds almost like a typical corporate rumor, complete with dramatic and egregious ironies: The tipster says layoffs are planned for December 10, just four days after a multi-million-dollar company-wide Christmas party.

Merry Christmas, you’re fired. Hope you saved enough to have at least a happy New Year, cuz we’re cutting out severances. Aren’t these ice sculptures swell?

In fairness, rumors of Yahoo layoffs have circulated since January of this year—just before Microsoft made its historic bid. Yahoo was still denying layoff rumors as late as October 2, and then it was a couple thousand fewer laid off.

Interesting timing, though, because as Yahoo stock dipped below $12 a week before the company reveals its Q3 revenue report, the mere mention of Microsoft’s Steve Ballmer re-warming to the idea of a now-deeply-discounted acquisition sent the stock back up to almost $13. Maybe renewed interest by Microsoft will save a few thousand jobs for a second time this year—and at something around $20 per share instead of the previous $33 per share, Microsoft should be able to afford to keep everybody.

As for Yang and Bostock? With enough Icahn-produced rope to hang themselves with, sure seems like their days are numbered, doesn’t it?
 

Yahoo Cutting 3,500 Jobs?
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  • MHK

    Jerry is too arrogant and stupid to make this work.  He has screwed his shareholders beyond belief and Yang is the only one in the world that thinks the company is still worth $37 a share.  He should be fired ASAP

  • http://www.yahoo.com Guest

    If there was never a Yahoo, there would never be all the great site out there that try to out do it.  Don’t foget, Yahoo still has more user information that is valuable to advertisers than any other site on the web. Period.  $37 is a steal, compared to $400 for G, right?

  • Guest

    most get fired without at as much as a thanks. pack your crap and go.

     

    been there done that. feel bad- but thats life for the rest of us.

  • http://www.diamondonnet.com/ Diamonds

    That would be a bummer, Yahoo! has too many employees.  I wonder if this cycle will happen again in the next 5 years.

  • zenboy

    In a second move to help "right-size" the company, Yahoo announces that it will only return 90% of the internet when people are using their search engine tool. Certain types of sites are excluded – and Jerry Wang feels that this will help right-size his company for the new year: http://tinyurl.com/5s3le6

  • http://www.portalmaonaroda.com.br informatica

    I don

  • http://www.casinorefer.com/ relilable

    I guess Jerry Yang feels that maybe he would have better luck betting the whole company on a Las Vegas table than he has at running it. As you reported, our CFO is cutting the severance packages (I guess so he can fund the multimillion dollar holiday party). Employees are outraged and are planning to boycott the party. Maybe they should have surveyed the employees to see if they wanted to attend one party or get better benefits in their layoff packages. My finance peers should get their resumes updated as 50% of us will be leaving.

  • http://aneka-resep-masakan-indonesia.blogspot.com/2008/12/resep-bakso.html cara membuat bakso

    The another sad news is, maybe they should need to overcome this situation or else google will take its place.

  • http://car2be.com/ Used Mercury

    In fairness, rumors of Yahoo layoffs have circulated since January of this year