The Internet company made it official this morning: It has started to tell about 2,000 employees that they’re being sacrificed “as part of an overall plan to reshape the Company for the future,” Yahoo says in an SEC filing. Although Yahoo doesn’t know exactly how much this will cost, it estimates that it will take a pre-tax charge of as much as $145M, most of it to be recognized in the current quarter which ends in June. “The pre-tax cash charge estimate does not include facilities, lease or other charges the Company may incur as part of this action,” Yahoo says. Reports about the firings from the 14,000-plus work force have circulated for weeks, and were expected to focus on the products, research and marketing divisions. Yahoo is struggling to chart a new course amid turmoil at the top with the firing last year of Carol Bartz as CEO and the resignation from the board of co-founder Jerry Yang. Meanwhile hedge fund Third Point is waging a proxy fight to elect four directors to the Yahoo board: Third Point CEO Daniel Loeb, corporate restructuring expert Harry Wilson, media consultant Michael Wolf, and former NBCUniversal CEO Jeff Zucker.


Anything Zucker touches turns to crap. He has the reverse Midas touch. Evidence is the mess he made of NBC. Now he’s doing the same for Yahoo. Words fail…
Will Jeff Zucker be one of them?
Maybe they could save 2,000 jobs if they would just hire ONE person who knew how to make their search engine work.
Fire everyone who is making more than $100,000, put everybody else on an incentive program, we make a profit you get paid, no profit, you don’t, and lastly, scrap just about every so called “new” idea implimented in the past few years. Reset and start again. Hopefully with people who one, know what they are doing and two, have some vision/innovation. Otherwise Yahoo is toast.
I won’t comment on Yahoo salaries, but Yahoo does offer performance-based incentives. Yahoo is a profitable company and generally has been at least to my recent memory.
The problem is tech companies and their investors want to see growth, but Yahoo is stagnant or even losing market share to Google and Facebook as advertisers (their core source of revenue) shift ad budgets to more socially driven sites.