Yahoo job cuts expected
Published: 20 Oct 2008 08:18 BST
Yahoo is expected to announce cost-cutting moves this week, including another round of layoffs, according to a report on Sunday in The Wall Street Journal.
The exact number of layoffs is unknown, but job cuts are expected to come from all departments in the 14,300-employee company, according to the report.
Yahoo, which announces its third-quarter earnings on Tuesday, has reportedly asked managers to identify areas where the company can achieve operating budget reductions of 15 percent. In January, Yahoo laid off an estimated 1,100 employees in a bid to cut costs and trim operations that weren't performing as well as others.
Rumours of layoffs at Yahoo have been circulating for weeks, with Silicon Alley Insider's Henry Blodget calling for the elimination of 3,000 jobs at the company.
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However, Yahoo's stock has been under tremendous pressure lately, closing at $12.90 (£7.39) on Friday. Just a week before that, the internet giant's stock traded as low as $11.37 — its lowest price since March 2003. Yahoo, as a result, also now has a market capitalisation of $17.88bn. Last May, Microsoft walked away from its buyout offer of $47.5bn to snap up all of Yahoo, only later to return with a partial buyout offer of $9bn to acquire just the company's search assets.
Yahoo's stock price got a boost on Thursday after Microsoft chief executive Steve Ballmer noted Yahoo's declining stock price while saying that a takeover of the internet search pioneer still made sense.
Although Yahoo's shares continue to give up ground, the company's stock performance during recent trading sessions has largely mirrored the broader markets. Many technology companies have resorted to layoffs recently to stem their financial losses.
Credit: Report: Yahoo plans cost-cutting moves, layoffs from CNET News
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