Yahoo To Lay Off 1,500 (It’s Official)
By Anna Johnson on October 22nd, 2008In a company-wide memo sent to Yahoo staff yesterday, Yahoo co-founder and CEO Jerry Yang indicated that about 10 percent (about 1,500) of the company’s workforce would be cut. Unfortunately, those affected won’t know they’ll be out the door for several weeks.
How bad is it at Yahoo? Well, revenue for the last quarter has barely grown since last year, rising just 1 percent from $1.77 billion last year to $1.79 billion this year and net revenue – which excludes commissions paid to advertising partners – was $1.32 billion, compared with $1.28 billion a year ago.
This constitutes just a 3 percent increase.
Meanwhile, net income for the quarter is down by about a third. Highlighting the need for cost cuts, it was just $54 million for the last quarter, compared with $151 million a year before. That being so, Yahoo is aiming to cut $400 million in costs by the end of the year.
Miguel Helft, “Yahoo to Cut About 10% of Workers”, The New York Times, October 21, 2008
