Yahoo to Layoff 500 Workers Despite Gains
Internet giant Yahoo! Inc. recently announced it will reduce 5 percent of its workforce which will affect more than 700 employees despite reporting 3 percent gains in European trading, boosting profit after few months of slumping revenue.
Because of the recession, many online advertising companies had pulled its ad on the Internet, affecting websites, search engine tools, and other online properties.
Internet giant Yahoo! Inc. recently announced it will reduce 5 percent of its workforce which will affect more than 700 employees despite reporting 3 percent gains in European trading, boosting profit after few months of slumping revenue.
Because of the recession, many online advertising companies had pulled its ad on the Internet, affecting websites, search engine tools, and other online properties. With this trend, Yahoo has experienced record-low revenue as the economy further succumbs to the financial crisis.
Meanwhile, the announced layoff is the first under the administration of Yahoo chief executive Carol Bartz who replaced Jerry Yang after the latter was accused of failing to make crucial decisions for the interest of the Internet giant.
The earlier report said that Bartz warned that she may decide to eliminate other products which are not doing well in the market.
Some experts said that Bartz’s move is an attempt to pull back the company from the financial slump following months of low advertising revenue.
Before she replaced Yang as a chief executive, Yahoo has laid off more than 1,600 workers in 2008.
When asked if workforce reduction is still necessary, Bartz said this cost-cutting measure is very important to the survival of a company amid the recession.
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