More Financial Woes for Yahoo

By

Well, the rumors turned out to be true. Yahoo is this week embarking on the layoff of about 600 employees, most of them in the company's troubled Products division, translating to about four percent of its entire staff.

“This was a tough call, but a necessary one,” wrote Carol Bartz, CEO of Yahoo, in a company-wide employee memo. “We need to make these changes now to ensure that Products [division] is structured and running the way we want as 2011 begins. And that means we need fewer Yahoos in some areas, and different types of Yahoos in others.”

Now comes the news that Yahoo may begin trimming some of its online services and features.

The content-sharing site, Delicious, may not be on Yahoo Inc.'s shrinking menu of online services much longer, according to the Associated Press.

Delicious, apparently, is on a list of services that Yahoo is planning to close. An internal Yahoo document containing the so-called “endangered list” was posted on the Internet yesterday. The presentation was shared through Twitter, whose popularity may be one of the reasons that Yahoo no longer prizes Delicious as much as it did five years ago when it bought the site for an undisclosed sum.

In a statement, Yahoo confirmed it will phase out several services in the coming months without specifically mentioning Delicious. The company, based in Sunnyvale, Calif., said it would provide more details “when appropriate.”

Other services on Yahoo's hit list include MyBlogLog, Yahoo Buzz, Yahoo Picks and Yahoo Bookmarks.

Both the layoffs and the cut in services appear to be part of a “housecleaning” project that company CEO Bartz began after she was hired two years ago. She has closed or sold a variety of unprofitable or little-used services so Yahoo could focus on other areas more likely to attract traffic and sell advertising. Some of the priorities heading into 2011 include mobile, communications and local services, said the AP. Thus far, however, Bratz's strategy has done little to stem Yahoo's financial troubles or bolster its stock price.

Yahoo bought content-sharing site Delicious at a time when its then-CEO, Terry Semel, was trying to build a social hub. He later infamously tried to buy Facebook for $1 billion, only to be turned down by that social network's founder, Mark Zuckerberg. Delicious founder, Joshua Schacther, now says he regrets selling the company to Yahoo.


Tracey Schelmetic is a contributing editor for TechZone360. To read more of Tracey's articles, please visit her columnist page.

Edited by Jaclyn Allard

TechZone360 Contributor

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