Tuesday, April 14, 2009

Is Yahoo Planning Further Job Cuts?

. Tuesday, April 14, 2009

By stockOzone team

Yahoo Inc. (NASDAQ: YHOO) is planning another round of job cuts, the first since Carol Bartz took over as chief executive, according to a report Tuesday in The New York Times.

The report suggested that job cuts could affect several hundred employees and may be announced as early as Tuesday when Yahoo reports first-quarter financial results.

This will be the third time that Yahoo is getting rid of its employees since first quarter of 2008. Earlier, close to 2,400 jobs were eliminated by Yahoo in two instalments. The company finished 2008 with 13,600 employees.

A Yahoo spokeswoman declined to comment on the reports of further layoffs.

An industry veteran, Carol Bartz was appointed as the chief executive of Yahoo in late January after Yahoo co-founder Jerry Yang stepped down under fierce financial pressure and criticism over his failure to strike a deal with Microsoft. Bartz earlier announced a sweeping reorganization in February aimed at making the Internet pioneer faster, simpler, and more responsive to those who use its services.

Yahoo, which is the No. 2 U.S. Internet search provider, has steadily lost search market share to rival Google Inc. (NASDAQ: GOOG). Economic downturn compunded the problem for the company. The company is reportedly engaged in talks with Microsoft (NASDAQ: MSFT) to form a search and advertising partnership.

“If you look at the changing economic environment and the changing leadership, it is not surprising that you would see further cuts at the company,” said Scott Kessler, a stock analyst with Standard & Poor’s.

Disclosure: Author does not own any of the stocks discussed here.





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