Yahoo to Drop Services in the Wake of Layoffs

By

In the wake of laying off 600 employees, Yahoo Inc. is gearing up to shutter more of its services, according to an Associated Press report. Among the services on the company’s endangered list: content-sharing site Delicious, MyBlogLog, Yahoo Buzz, Yahoo Picks and Yahoo Bookmarks, reported AP.

Yahoo reduced its workforce by four percent earlier this week – a move that industry observers view as an attempt to cut costs and expand the Internet giant’s operating profit margins.

Such trimming was earlier predicted by technology blog TechCrunch which reported as far back as November that Yahoo was preparing to lay off 20 percent of its total staff. Citing two unnamed sources, the post read:

“Yahoo is preparing to lay off 20 percent of total staff, we’ve heard from two independent sources, and managers have been asked to begin to make the tough decisions on who stays and who goes. This news comes just days after Google announced a 10 percent pay raise and $1,000 spot bonus for all employees. This is a story we’ve been tracking down for weeks.”

Yahoo retaliated by announcing that TechCrunch’s post simply isn’t accurate.

“Yahoo is always evaluating expenses to align with the company’s financial goals,” Charles Sipkins, a spokesman for the Sunnyvale, California-based company, said in an e-mail, as reported by Bloomberg. “However, a 20 percent reduction in Yahoo’s workforce across the board is misleading and inaccurate.”

This has been a tough season for Yahoo. In early November, rumors swirled of a pending takeover when the company revealed another quarter of less-than-impressive revenue results, according to industry observers. Yahoo reported revenue of $1.6 billion for the third quarter of 2010, a mere 2 percent increase from the third quarter of 2009.

In October, TechZone360.com reported that three top Yahoo Inc. executives announced their departure from the company, putting the pressure on CEO, Carol Bartz, as she approaches the end of her second year.

The defecting executives included Hilary Schneider, an executive vice president who spearheaded Yahoo’s advertising in the U.S.; David Ko, a senior vice president in charge of mobile and audience; and Jimmy Pitaro, a vice president who ran the division that produced the heavily trafficked news, sports and finance sections of Yahoo’s website. 




Edited by Jaclyn Allard

TechZone360 Contributing Editor

SHARE THIS ARTICLE
Related Articles

Coding and Invention Made Fun

By: Special Guest    10/12/2018

SAM is a series of kits that integrates hardware and software with the Internet. Combining wireless building blocks composed of sensors and actors con…

Read More

Facebook Marketplace Now Leverages AI

By: Paula Bernier    10/3/2018

Artificial intelligence is changing the way businesses interact with customers. Facebook's announcement this week is just another example of how this …

Read More

Oct. 17 Webinar to Address Apache Spark Benefits, Tools

By: Paula Bernier    10/2/2018

In the upcoming webinar "Apache Spark: The New Enterprise Backbone for ETL, Batch and Real-time Streaming," industry experts will offer details on clo…

Read More

It's Black and White: Cybercriminals Are Spending 10x More Than Enterprises to Control, Disrupt and Steal

By: Cynthia S. Artin    9/26/2018

In a stunning new report by Carbon Black, "Hacking, Escalating Attacks and The Role of Threat Hunting" the company revealed that 92% of UK companies s…

Read More

6 Challenges of 5G, and the 9 Pillars of Assurance Strategy

By: Special Guest    9/17/2018

To make 5G possible, everything will change. The 5G network will involve new antennas and chipsets, new architectures, new KPIs, new vendors, cloud di…

Read More