Yahoo Lays Off 2,000 More Employees
The Yahoo layoffs are here. We wrote about these a few weeks ago after it was revealed that Yahoo’s new CEO, Scott Thompson was talking radical steps to make the company profitable again. Thompson had made it very clear in internal communications that “real change” is coming to the once darling of Silicon Valley.
That change of course entails layoffs and reports are that the announcement of these layoffs (2,000 by all accounts) is imminent—perhaps in the next couple of days. This of course will be very sad news for the people affected and will no doubt cause some minor shockwave along the corridors of Silicon Valley.
Yahoo as everybody knows is in serious trouble and hasn’t been profitable for a long time. Google has long since made it irrelevant in the search market, and much of its media business has been floundering of late. Reports are that many underperforming sectors of the company will either be sold off or killed off, and that means many more people will face the layoff demon.
Whether Thompson’s rather radical approach works remains to be seen; layoffs after all are the classic textbook approach and without innovation, Yahoo won’t be able to compete. Sending people home is really about shoring up cash flow—and that, will perhaps be the only achievement of the Thompson era.
Do you think Thompson is being a bit too radical in his cost-cutting? Sound off in the comments below.