Yahoo Mass Layoff Plan

October 2nd, 2008 at 12:00 am

yahoo layoffs rumors us economy lehman brothers yhoo stock decline

Let’s face it, the economic situation in the US is not looking too good.  The closure of the Lehman Brothers and other mortgage firms on Wall Street are good indications of the turmoil the US faces and across the country in Silicon Valley, technology firms aren’t spared.

Yahoo has seen brighter days before and it looks like this year is not turning out too good for them.  After the whole Microhoo fiasco back in the spring that dragged all through the summer, Yahoo’s stock has dipped well below the $20 mark and even below their value when Microsoft initially offered to buy them out.   Now with the economic crisis in Wall Street, Yahoo’s forecast is grim and the only way to get by is by cost cutting.

Silicon Alley Insider is reporting that layoffs are on the drawing board following an earlier report on Jerry Yang’s memo to Yahoo employees on shaping up.

"as we look ahead and to position us for success in 2009, we’re continuing the work already underway to get fit as an organization: actively looking for ways to make process and structural changes to our business that will allow us to work more efficiently, with more scale. we’ve enlisted the help of Bain & Co. to work with the leadership team on identifying ways to leverage our strengths, and to improve and accelerate our performance." 

Rumors on this most recent and upcoming round of layoffs do not have too many details.  All the information coming out are sketchy and puts the estimate of cuts from hundreds of employees to about 3500 or 20% of the Yahoo workforce. 

3500 may seem too much according to some people familiar with Yahoo’s corporate behavior.  But with all that’s happening to Yahoo and the US economy, it just might be possible.

So to all Yahoos out there, we hope it won’t be your head that rolls.  However if it does, well, c’est la vie