Cutbacks at Yahoo Expected To Include Hundreds of Jobs
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Tuesday, January 22, 2008
Yahoo, owner of the most-visited U.S. Web site, will make cutbacks in some areas of its business as it faces increasing competition from Google and Microsoft.
The New York Times reported on its Web site yesterday that Yahoo would cut hundreds of jobs as well.
"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," according to a statement from the Sunnyvale, Calif., company.
Yahoo spokeswoman May Petry declined to comment further.
Yahoo has reported seven consecutive quarters of declining profit as the company lost Internet-search users to Google and faced competition from new rivals such as Facebook and News Corp.'s MySpace. Yahoo chief executive Jerry Yang began a reorganization after taking over from Terry Semel in June.
"People right now are very skeptical about Yahoo, and for good reason," said Scott Kessler, an equity analyst at Standard & Poor's in New York, who recommends holding onto Yahoo shares. "It has not consistently delivered what most would characterize as good financial performance."
Henry Blodget, a former Merrill Lynch analyst, said on his Silicon Alley Insider blog on Jan. 19 that Yahoo may cut 1,500 to 2,500 jobs.
Yahoo fell 44 cents, to $20.78, on Friday. The stock has fallen 11 percent this year.
