Yes, Yahoo Cuts Coming. How Many? (YHOO)
No, not really. While our Henry Blodget has called on Yahoo to can 3,018 people (that's more than 20% of the workforce), the odds that Yahoo will make cuts on that scale are very low, we're told by people familiar with the company's thinking. But we're also told that another round of layoffs are indeed on the drawing board, prompted by a grim financial forecast.
Q3 results, which will be released in three weeks, should be fine, say people familiar with the company's performance. But the online ad market was already pulling up prior to Wall Street's collapse over the last few weeks, so Q4 and beyond could be scary.
So how many heads will roll? We won't a hazard a guess - yet. But we're happy to hear what you think. Sound off in comments, or if you want to stay anonymous, use our tip box.
See Also: Yahoo Fat Farm: How Many People Does Yahoo Need To Fire?
Yahoo Fat Farm Spreadsheet
Jerry To Yahoos: Get Ready To Get Fired; I've Hired Bain
I had an acquaintance who got cut 7-8 months ago during that round of layoffs (happily employed elsewhere now). She mentioned that her Yahoo salary had a large component based on quarterly performance. When she got cut, Yahoo didn't pay her the previous quarter's performance bonus.
This sounded completely crazy and unethical to to. She was employed during the entire quarter but a company would't pay her?? I didn't believe it at the time but have heard similar stories from a couple others.
Can anyone confirm or deny this is how Yahoo operates?? Seems like a shitty way to save a few $.
BTW, if there is value exceeding $30/share in YHOO let's see Sue convince her pal's Warren Buffett Berkshire to throw in a measly $100M in the company. At $17 this stock is a screaming buy!
She's been able to get a pass b/c she has his blessing, and she indeed may be intelligent, but she does not know the technology or advertising business. Do the honorable thing and move aside. Let someone else give it a hot. You're about to leave 1000s of people w/families without a job.
Nothing but love for PK!
What a bunch of unethical executives. How could you sign off on this?
http://www.scribd.com/doc/2304712/Yahoo-Investor-Presentation
@yahoo fear - that was predictable absent strong leadership. I was really hoping for Jerry to jump into full-scale survival mode and ride on a wave of adrenalin from the MSFT negotiations.
For the record, I never thought that the MSFT deal as proposed was a good idea for either YHOO or MSFT, but as things currently stand, things are clearly working against Jerry: Economy and ad buys tanking, GOOG outsourcing deal in serious jeopardy (in part by the predictable campaign of MSFT against it), no clear plans for the future (not even hardly any *announcements*, for crying out loud).
So will MSFT now make an offer for say $22-25? Time is awasting for them as well, when it comes to competing with Google. Haven't heard anything of substance out of Ballmer who claimed YHOO puchase would have been just a "tactic". What is the strategy for MSFT going forward then, another prize gimmick a la Live Search Cashback?
Apparently: Live Search "Searchperks" coming your way... hunh?
I for sure thought they would have picked up Quil by now, simply for the technology infusion.
After what has happened to the share holders Yang needs to be put in the same cell as the guys from Adelphia Communications and Tyco. Where is the plan now Jerry? And quit hiding like a roach come out and get somthing done!
TechTicker must be incredibly cheap to produce (The GFX package looks like it was made in Windows ME) and as Henry correctly points out, it produces a truckload of traffic.
If this show is killed, It is a harsh testament to Wallstreet (who are already dismayed in Y exclamation point's attempt at a turnaround) that Yahoo is completely incapable of monetizing content.
If Yahoo! doesn't want a merger, it has to let go of about 1800 staff in all these weird divisions that seem to produce nothing. Recruit the laid-off sales staff from Quigo and Tacoma, slash pricing on pre-roll and display ads and swamp premium advertisers like Car Manufacturers and (govt. insured) banks with massive discounts and longer credit terms.
They're gonna need to be the Walmart of advertisers in this environment.
I wouldn't buy AOL at this point. There's too many problems at home. Let AOL implode on itself, then go and feed off the decaying carcass at a later date.
Only MS and a big long-term capital commitment can ensure a turn-around at AOL.
Short of a miracle I think Yahoo may not exist in the coming 4-5 years. It needs to figure out how to make content and monetize it Basically Yahoo needs to figure out how to be Yahoo.
Use one of the video platforms to insert ads every time your video plays, where ever it plays. CDN costs are plummeting. Video is the new hotness w/advertisers. This is the future. Big media doesn't get it. You deserve the control. It is Grade A content.
Somehow Y! still manages to bring in a hearty profit and can't spend major advertiser's money fast enough.
A handful of questionable execs and a shitty stock price is hardly reason to throw in the towel.
I guess I'm mainly shocked that more people aren't rooting for Yahoo! to succeed and continue to make the marketplace competitive.
Wait, your management is telling you they'll continue to "invest in search" long term. Oh sure!
Trust management. They know best. They're smart. Brilliantly dodging that evil MSFT company...bravo!
I hope you hire a few lifeguards b/c your options are drowning underwater.
If yahoo keeps on firing 20% in every quater then it will have all its employees fired by 5 quaters!!
With the popularity going on high in India this is really hard to think how 15$s will matter. Moreover with the recent scenario stock prices going down is no big deal! Stocks say, "Make hay while Sun Shines". U don't know what new Deal/Product/News is on the way...
The Bailout plan says "Expected the Unexpected!!"
See the Invisible Figures! Enjoy & Yahoooooooo!
All my friends from yahoo already prepared their resumes and looking for job since the declined deal of MS merger. And it is so obvious that the current situation is not going well; the stock market is the number one proof. And i feel like the execs are so desperate; otherwise they would open their doors to hackers to bring innovation to Yahoo! am i right or not?
HAHA!! I think it's a few years too late for that, eh?
@Monica: Yeah, our group is chugging along as well. I don't know who the slackers are the other guy is talking about, but I think I know where we can look at cutting 20%. I mean heck, they're not working and yet there's no difference? Perfect place to start.
@@Monica: Due to the nature of the deal, details of the contract between Google and Yahoo! are provided on a need-to-know basis. I suppose we can forgive your myopic response based on your ignorance of such details.
For all of you yahoo share holders who bought the stock when it was first issued. You still have $6 up on your investment.
All of this mess is because people think they can get 30% rate of return on their investments. There is no magic formula that will churn these numbers for everyone all the time. When you make a profit someone else made a loss. So goes the game.
So here is an advice for all of you expecting a 30% rate of return. A 30% rate of return is called 'usury' and is immoral.
So essentially we have immoral people going after the stocks of companies that are immoral in the first place because they promise constant growth at the rate of 30% per year.
So here is my comment to all of you investors with 'greed' in your eyes. Serves you right if a few companies like yahoo take the toss. This will teach you that normal rates of return are usually only slightly better than what your bank pays you for a savings account.
All that investors in stocks have going for them is the greed of the person buying stocks off of you for a higher price. Remember that when the stocks go low someone else lost money and it will come back to you as a higher cost of something else.
To all investors that expect a 30% rate of return or near that figure. Suck it up!
Bob
In times of economic crisis, there is a shift to new leaders. The old tech companies that don't innovate prior and during these times are left behind by new more flexible organizations that have a new look and feel. Coming out of this crisis Yahoo will be a shadow of itself from the late 90's. It will still be around but much smaller, generating much less money and with half or less the number of employees.