SAN FRANCISCO – Yahoo Inc.'s holiday trimmings will include 600 to
700 layoffs in the Internet company's latest shake-up triggered by
Employees could be notified of the job cuts as early
as Tuesday, according to a person familiar with Yahoo's plans. The
person asked for anonymity because Yahoo hadn't made a formal
The planned cutbacks represent about 5 percent of
Yahoo's work force of 14,100 employees. It will mark Yahoo's fourth mass
layoff in the past three years.
The latest two housecleanings have come under the
company's current CEO, Carol Bartz, a Silicon Valley veteran hired
nearly two years, despite a lack of experience on the Web or in
advertising — Yahoo's main source of revenue.
This week's round of reductions is expected to be
concentrated in Yahoo's U.S. products group, which already has been
undergoing an overhaul since Bartz hired former Microsoft Corp.
executive Blake Irving to run the division last spring.
The job cuts won't come as a shock. News of the
looming layoffs was first reported last month by two popular technology
blogs, TechCrunch and All Things Digital.
Yahoo's feeble financial growth, stagnant stock price
and recent management defections have raised questions about whether
Bartz herself might be shown the door before her contract expires in
The company's revenue had edged up by less than 2
percent to $4.8 billion through the first nine months of the year,
reflecting the difficulty Yahoo has had selling ads while other Internet
companies such as Google Inc. and Facebook are thriving.
Google's revenue climbed 23 percent to nearly $21
billion through the first nine months of the year. Privately held
Facebook doesn't disclose its results but it is growing so fast that it
had to move into larger headquarters earlier this year.
Yahoo's stock price fell 31 cents to close Monday at
$16.70, a few cents below where it ended last year. Meanwhile, the
technology-driven Nasdaq composite index has risen by 16 percent so far
The malaise has spurred speculation that
opportunistic buyout firms might put together a takeover bid for Yahoo,
possibly in partnership with another embattled Internet icon, AOL Inc.
Bartz, 62, has repeatedly insisted Yahoo, which is
based in Sunnyvale, is heading in the right direction, although she has
cautioned it might be another year or two before there's a significant
improvement in the company's financial results.