Yahoo to Streamline Services and Axe About 1000 Employees

January 30th, 2008 at 12:00 am
 


Yahoo logo

Jerry Yang, CEO of Yahoo has made some sad acknowledgements regarding the company’s performance last quarter adn generally the entire 2007.

Yahoo, one of the biggest companies on the web today despite having the largest number of users for their email service, is in trouble.  Yang, in his announcement foresaw a disappointing 2008 for the company.  2007 fourth quarter revenues were down to $206 million from $269 million the previous quarter.

In response to the decreasing revenues, Yahoo has announced that they will be axing about 1000 employees by the end of February to cut costs.  Furthermore, they will also be streamlining their services which includes shutting down some like Podcasts, Photos, and their unsuccessful social network.

Yahoo will be focusing their energies in more profitable areas like advertising technologies.

Despite all the troubles, Jerry Yang was still upbeat  (much like Steve Jobs) in saying that there will definitely be a turnaround for their stocks in 2009.  He claims that the measures they are taking now are simply long term investments that will probbly not significantly improve the company’s revenues this year.  “We are seeing early signs of success as a result of this clear new focus,” he said.

Yahoo has also recently announced at the CES 2008 their new strategy that takes advantage of tehir large email user base, Yahoo Life.