December 14, 2010 by staff
Employees may be informed of job cuts on Tuesday, according to a person familiar with Yahoo’s plans. The person requested anonymity because Yahoo had not made an official announcement.
The announced cuts represent about 5 percent of the workforce of 14,100 employees of Yahoo. It will mark Yahoo’s layoff fourth mass over the last three years.
The latter two have been Housecleaning current company CEO, Carol Bartz, a veteran Silicon Valley hired nearly two years, despite a lack of experience on the Web or in advertising – the main source Yahoo’s revenue.
This week’s round of the reduction should be concentrated in products American group Yahoo, which has already been revised since Bartz hired former Microsoft Corp. executive Blake Irving to run the division last spring.
The job cuts will not come as a shock. News of the layoff threat was reported last month by two popular technology blogs, TechCrunch and All Things Digital.
Yahoo weak financial growth, stagnant stock prices and management of recent defections have raised questions about whether it could be Bartz at the door before his contract expires in January 2013.
The company’s revenues had risen less than 2 percent to 4.8 billion through the first nine months of the year, reflecting the difficulty Yahoo has been selling advertising space so that Internet companies such as Google Inc. and Facebook are booming.
Google revenue rose 23 percent to nearly 21 billion through the first nine months of the year. Privately held Facebook does not disclose its results, but it’s so fast she had to move into larger headquarters earlier this year.
Yahoo’s stock price dropped 31 cents to close Monday at 16.70, and a few cents below where it ended last year. Meanwhile, the NASDAQ composite technology based rose by 16 percent so far this year.
The unrest has sparked speculation that company’s opportunistic acquisition could put together a takeover bid for Yahoo, possibly in partnership with another struggling Internet icon, AOL Inc.
Bartz, 62, has repeatedly insisted Yahoo, based in Sunnyvale, is headed in the right direction, although it warned there could be a year or two before there is a significant improvement in financial results for the company.
Copyright © 2010 the Associated Press. All rights reserved.
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