Posted tagged ‘Jeffrey Lindsay’

Yahoo To Layoff Up to 1,500 Workers

October 22, 2008

Times are tough all over right now. Even some of the Silicon Valley’s giants are not immune to a struggling economy. Battered by plunging profits and a rough economic outlook, Yahoo announced yesterday that it will layoff at least 10% of its staff,  amounting to up to 1,500 jobs. I guess none of them will be buying the new Android phone today.

From the New York Times:

Yahoo said Tuesday that it would lay off at least 10 percent of its 15,000 workers as it tries to bring down its expenses. It said reduced marketing budgets had taken a bite out of its online advertising business, sending its net income for the third quarter tumbling by 64 percent.

The company also lowered its revenue projections for the remainder of the year and said it was too early to make forecasts for 2009.

The results come as strategic moves that Yahoo has been considering, including a search advertising partnership with its rival Google and a merger with Time Warner’s AOL unit, have gotten bogged down, leaving the company with few options but to cut expenses, analysts said.

“They just have to batten down the hatches, lighten the load and ride this thing out,” said Jeffrey Lindsay, an analyst with Sanford C. Bernstein & Company.

“Hopefully,” he added, “they will make it to the other side with their cash intact, presumably as a smaller and more efficient organization.”

From CNNMoney:

Yahoo had 15,200 employees at the end of the third quarter. The much-anticipated round of layoffs comes on the heels of another 1,000 job cuts in late January.

“We have been disciplined about balancing investments with cost management all year, and have now set in motion initiatives to reduce costs and enhance productivity,” said Yahoo co-founder and CEO Jerry Yang in a written statement.

“The steps we are taking this quarter should deliver both near-term benefits to operating cash flow, and substantially enhance the nimbleness and flexibility with which we compete over the long term,” he added.

In a conference call after the results were announced, Yang said the company was working to reduce costs in other ways than just slashing jobs, including relocating offices and consolidating real estate. “We are identifying ways we can operate more efficiently,” he said.

From USA Today:

The Silicon Valley company announced the latest round of cuts against a backdrop of poor third-quarter results and a grim economic forecast. The company’s profit tumbled 64%, to $54 million, or 4 cents per share, from $151 million, or 11 cents per share, in the same quarter a year ago.

It is Yahoo’s second significant round of layoffs this year. In January, the troubled Internet giant laid off 1,000 workers, but the cuts have done little to assuage investor confidence.

Advertisements