Among the things it’s wanted Yahoo to do is cut staff, which has gotten increasing bloated the last three years – while the company’s revenue growth rate cratered – and its stock price along with it – has now settled in at close to 14,000 people, up 23% last year alone.
Wall Street figures Yahoo needs to loose something like 1,400-3,500 of them or 10%-25%.
Henry Blodget – yes, the Henry Blodget – writing for the Silicon Alley Inside blog over the weekend claimed that “1,500-2,000 jobs may be eliminated in the next two weeks.”
It appears, however, to be something of a false hope and that it may turn out to be only hundreds – not thousands of jobs – that go – particularly perhaps in Europe – only to be replaced with hundreds of other jobs that – according to what the Wall Street Journal’s heard – will keep Yahoo at 14,000 strong.
Yahoo appears to weeding out people and operations outside of what it currently considers strategic priorities, apparently an ongoing selection process ahead of a board meeting next week around the time of the company’s quarterly report on January 29.
In light of the rumors flying, the company handed out a statement saying, “Yahoo has embarked on a multiyear transformation that includes making tough decisions about the business to help the company grow. Yahoo plans to invest in some areas, reduce emphasis in others, and eliminate some areas of the business that don’t support the company’s priorities.”
Since October those priorities have been: traffic, advertising and opening its platform to developers.
An hour and a half before the close on a very roller-coaster day, Yahoo was down another 3.6% to 20 bucks and change