Yahoo Layoffs In the Works?

Vendredi, 12 Novembre 2010 06:00

Yahoo Layoffs In the Works?

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Layoffs appear to be looming at Yahoo, which sparks two thoughts: Of course they are, and no, it won’t help.

The crux of Yahoo’s problem is self-identity. It has bought and sold so many

businesses (usually at a steep loss), stepped in and out of so many markets (including its one-time core, search) that even now its top leadership has trouble saying what the company is all about.

Yahoo has 14,100 employees, with average revenue per employee of just about $80,000, compared to $220,000 for peers like Google, Amazon and EBay. It is badly over staffed and needs to make some intelligent cuts.

Even more, the company needs a mission that makes sense.

As word swirls of reductions between 650 (reported by Kara Swisher at AllThingsD) and 2,800 (as first reported by Michael Arrington at TechCrunch, sparking a rebuttal from Yahoo), Yahoo is also said to be hiring a small cadre of veteran journalists to jump start original politics and media coverage.

Of course they are. And no, it won’t help.

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Authors: Evan Hansen

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