In my previous post I had talked about Oracle Acquiring Sun. But it’s not all merry at Yahoo which announced today that it will be axing 5 % of its workforce. Job losses are everywhere but to see the internet Giant do this is a bit disappointing. It just goes to show that you can be very big in your field but when times are bad you are not immune to it.
One of the reasons for these job cuts is simple. One is that the company is struggling with the economic downturn and the second one is interesting which says the dominance of Google in internet search. Yahoo announced the job cuts as it reported quarterly income of $118 million, down 78 percent from a year ago but still above analysts’ expectations. Sales for the Silicon Valley Company fell 13 percent to $1.6 billion.
The company said the job cuts will affect between 600 and 700 workers, about the same number that were axed last year in an earlier bid to shore up profits. The latest job cuts were the first to be ordered by chief executive Carol Bartz, who replaced company co-founder Jerry Yang in January after he had been widely condemned for botching negotiations to sell Yahoo to Microsoft. Bartz has since met with Microsoft chief Steve Ballmer to talk about an alliance that would combine the companies’ search divisions to battle Google.
With Microsoft and Google already having axed their employees its now the turn of the yahoo employees. If you are one of them start praying that you don’t be that one. Cheers 🙂