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

Microsoft Live Mail to Outlook easy migration

By: Special Guest    5/24/2019

Microsoft has long been looking for ways to improve its email client. Unfortunately, for people who prefer to control their mailboxes themselves, some…

Read More

Should we fear the rise of the robots?

By: Special Guest    5/24/2019

Since the oldest times people have sought for ways to save them from hard physical work and menial activities. To find solutions they have invented ne…

Read More

How We Can Connect Rural America

By: Special Guest    5/23/2019

When Ginger and David McCullough sold their cattle ranch in the Texas Panhandle and moved to Johnson City to be closer to their son they didn't expect…

Read More

How Blockchain, AI and IoT are Intersecting in the Next Wave of Disruption

By: Special Guest    5/20/2019

The potential benefits of solutions that integrate AI, IoT and blockchain are endless. Projects that launch from intersections between these technolog…

Read More

How to Increase your iPhone Security

By: Special Guest    5/20/2019

In a world where most people cannot function as efficiently as they want without immediate and constant access to their mobile device, it is no surpri…

Read More