Even The Economy Affects The Internet [Yahoo Job Cuts]

10/20/2008 06:17:00 AM

(0) Comments

yhoo Yahoo Inc is expected to outline plans to cut expenses, which would include future job cuts, when it reports it quarterly earnings tomorrow (Tuesday).  The Internet company will discuss the scale and timing of the future layoffs, but specific details of the future layoffs, but specific details on the exact jobs to be eliminated will not be disclosed, a source familiar with the situation said on Sunday according to a Reuters article.

The Wall Street Journal reported that the future layoffs will exceed the 1,000 jobs Yahoo previously said it would eliminate.  Some managers have also been asked to identify operating budget cuts of around 15 percent, according to the Wall Street Journal.

Yahoo recently hired consultants Bain & Company to help identify potential "structural changes".

Yahoo & Microsoft

Microsoft has denied reports CEO Steve Ballmer believes a Yahoo deal could still be on the cards.  "Our position hasn't changed," the company said in a statement.  "Microsoft has no interest in acquiring Yahoo; there are no discussions between the companies."  The comment follows media reports Ballmer told Gartner ITXpo conference attendees the Windows maker might still pursue some form of search tie.   

Ballmer had gone on to remark that "We offered $33 bucks (for Yahoo) and it's $11 today.  It's clear Yahoo didn't want to sell.  They probably still think it's worth more than $33 a share."

"I still think it makes sense for their shareholders and ours."

Meanwhile Yahoo has declined to comment on Ballmer's statement even though its shareholders are hoping that Microsoft may return to the negotiating table.

Yahoo's shares have lost more than half of their value since the company rebuffed a $33 per share, or $47 billion, takeover offer from Microsoft.  On Friday, the shares closed at $12.90.  The company is currently valued at $18.6 billion compared to the $47 billion originally offered by Microsoft in January.

Misery Index

, , ,

0 Responses to "Even The Economy Affects The Internet [Yahoo Job Cuts]"

Post a Comment