Yahoo Cutting 3,500 Jobs?
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?
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?