Yahoo prepping reorg and massive layoffs, report says
Thousands could be gone by month's end; is company preparing to sell itself, or looking to rebuild again
Computerworld - Yahoo executives are planning a major corporate reorganization that could include thousands of layoffs, according to a report today by AllThingsD.
Citing unnamed sources, the Dow Jones-owned news site said the changes could come as soon as this month.
The report said that the layoffs would mostly affect Yahoo's large products organization, along with its public relations and marketing and research operations. Marginal businesses and weaker regional groups could also be affected, the report said.
"I wouldn't be surprised to see Yahoo lay off thousands," said Dan Olds, an analyst at Gabriel Consulting Group.
"Reading the tea leaves, I think that there's a plan in place to focus Yahoo more on gathering, analyzing, and making money off of user data rather than their traditional portal content and media serving," he added.
Analysts and industry observers wondered whether Yahoo is cutting costs in an effort to attract buyers for the beleagured firm, or its new executive team is looking to rebuild.
"It's possible that the goal here is simply to slim the company to make it more attractive to a buyer," said Olds.
"I think that they're going to at least try to turn the company around before putting it up on the block wholesale. However," he suggested, "if the right offer came along, they'd listen intently."
Yahoo, an Internet pioneer that has slipped in recent years to second-rate status, has been in a state of flux in recent months.
The latest upheaval began last September when Carol Bartz was pushed out of the CEO seat. That prompted rumors that Microsoft and Google were both making moves to buy Yahoo.
Yahoo early this year hired Scott Thompson, a former president of eBay's PayPal unit, to replace Bartz.
Sharon Gaudin covers the Internet and Web 2.0, emerging technologies, and desktop and laptop chips for Computerworld. Follow Sharon on Twitter at @sgaudin, or subscribe to Sharon's RSS feed . Her e-mail address is email@example.com.
Read more about Internet in Computerworld's Internet Topic Center.
- Social Media Education: The New Edge for Success Failure to train for social media will cost your business money. A recent report showed how digitally prepared companies can unlock up to...
- Social Media in Technology: A Unified Strategy for Success Find out how social media is sparking a new era of customer and industry-understanding in technology enterprises and how industry leaders are overcoming...
- How Network Connections Drive Web Application Performance Users around the globe, on all sorts of devices, expect Web applications to function as seamlessly as desktop applications. This paper discusses the...
- Big Data, Big Mess: Sound Risk Intelligence Through Complete Context This paper examines the insecurity of the small businesses in the supply chain and offers tips to close those backdoors into the enterprise.
- NSS Labs & Cisco Present: Evaluating Leading Breach Detection Systems Today's constantly evolving advanced malware and APTs can evade point-in-time defenses to penetrate networks. Security professionals must evolve their strategy in lockstep to...
- Will the Real Endpoint Threat Detection and Response Please Stand Up? This webinar explores new technologies & process for protecting endpoints from advanced attackers as well as the innovations that are pushing the envelope... All Internet White Papers | Webcasts
Our new bimonthly Internet of Things newsletter helps you keep pace with the rapidly evolving technologies, trends and developments related to the IoT. Subscribe now and stay up to date!