The Biz of Coding

Yahoo! Plans Layoff of over 1000 employees

by Ujwal Tickoo on January 22nd, 2008

Amidst all sorts of denails, Silcon Alley Insider and New York Times are abuzz with reports that Yahoo! will layoff between 1500-2000 people. Analysts agree. If true, it isnt a surprise to anyone. Is it? No heavy analysis is required. The current stock price of Yahoo! is around $ 20 and the company's market cap has eroded heavily while Google has hit about a US $ 180 billion!

Yahoo! has lost Search to Google while not creating any new traction in Social Networking space dominated by Facebook and MySpace. Sad days. Success often breeds arrogance or a false sense of invulnerability or stupidity or stupor which leads to collapse. The sane options imho could be (1) to outsource Search to Google and focus on whatever can be done to save the company or (2) sell out to Microsoft, buy Facebook and work the hell out of trouble. Anything else?

Hmmm…. Meg Whitman, CEO of eBay is set to retire. That could give a third option…merger of eBay and Yahoo!….with 1 less executive to worry about in the merged entity.

Ah! Yahoo!  

POSTED IN: Yahoo