Yahoo Downsizing in the United States

Yahoo Downsizing in the United States

Downsizing at Yahoo have been doing the rounds since Terry Semel (former CEO since 2001) left Yahoo last June 2007. Co-founder Jerry Yang, the interim CEO, no doubt would like to save as many jobs as possible. He has promised to focus on three objectives:

  1. Becoming a starting point for consumers on the Web;
  2. Making the company a top choice for marketers seeking to place ads on sites across the Web;
  3. And opening Yahoo’s technology infrastructure to third-party programmers and publishers.

Cause of downsizing:

* To reduce costs and narrow its focus to its most important businesses

* Yahoo shares fell more than 10 percent, to levels of more than three years ago.

* Yahoo was planning to expand its base in India.

Yahoo has begun narrowing the focus of its portal on a few key areas, including its front page, the personalized home page service MyYahoo, search, mail, and properties like news, finance and sports. Improvements to those services have led to double-digit increases in visits to Yahoo.

Yahoo said that it renegotiated and expanded a lucrative partnership with AT&T. Instead of receiving fees for each broadband customer AT&T signs up, Yahoo will share search and display advertising revenue with AT&T. Under the four-year deal, Yahoo’s search technology will also be available to AT&T’s cellphone customers.

The deal will result in upfront payments from AT&T to Yahoo for $300 million to $400 million, which will be recognized over the length of the agreement

Yahoo’s decision to purge 1000 staff members primarily from its United States operations (some in Europe) has been hot news this year. But, when the announcement was made was that Yahoo was planning to expand its base in India.

Yahoo is establishing a new lab in Bangalore with a focus on long-term research. The lab will be “a center of excellence for next generation search and advertising technologies, focused on making the Web more relevant and simple for users and advertisers.”

According to the Washington Post, the new lab will be headed by Rajeev Rastogi (previously the head of Bell Labs India) and will hire “sociologists, micro-economists, and computational scientists among other categories of staff for the lab.” The exact number of employees the new lab will hire was not disclosed, however the figure is believed to be in excess of 500 people.

References:

http://www.techcrunch.com/2008/03/04/yahoo-downsizing-in-the-united-states-hiring-in-india/

http://www.nytimes.com/2008/01/30/technology/30yahoo.html?_r=1&ex=1359435600&en=e797ae37305e5c8f&ei=5088&partner=rssnyt&emc=rss&oref=slogin

http://www.techcrunch.com/2008/01/21/yahoo-layoffs-for-real%E2%80%94but-whats-the-real-number/

Comments

YM said…
hi rose!! nice article!!!
hehe ako pa first ng comment..weee

i comment pud tnan nko articles ha??? hehe
July 7, 2008 at 4:36 AM
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