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Journalism of Courage
Internet major Yahoo Inc is planning major cost cutting initiatives including layoffs and is expected to disclose the measures as early as Monday.
The Wall Street Journal reported that Yahoo is drafting significant cost-cutting plans to try to reverse its fortunes from the inside.
Quoting people familiar with the matter, the report said, 8220;The Sunnyvale, Calif., Internet company is expected to disclose the cost cuts as soon as Tuesday, when it reports quarterly earnings8230; the cuts will involve layoffs, among other things.8221;
According to the report, the exact number of jobs to be eliminated remains unclear, though it is expected to exceed 1,000 that the company had announced in January.
Further, quoting people familiar with the matter, the Wall Street Journal said, precisely which jobs will be excised isn8217;t likely to be announced for at least a few weeks, though cuts are expected to come from across the company.
Yahoo had 14,300 employees as of the end of June.
Attributing to people familiar with the matter, the Wall Street Journal said, some Yahoo managers have also been asked to identify operating budget cuts to the tune of 15 per cent and added the company8217;s US hiring has slowed to a trickle, and Yahoo recently let go of two to three dozen external recruiters, according to these people.
Yahoo8217;s move to cut costs comes as economic crisis is 8220;spurring belt-tightening across the country.8221;
8220;Yahoo is scrambling to bounce back from years of disappointing revenue and profit growth as it has seen rivals such as Google Inc., News Corp.8217;s MySpace.com and Facebook Inc. grab more growth in the Internet sector,8221; the report added.
