Yahoo! Layoffs Coming (YHOO, GOOG, MSFT)

Print Email

A report at The Wall Street Journal’s All Things Digital blog, cites several sources confirming that Yahoo! Inc. (NASDAQ: YHOO) will begin firing workers next week. The company employs about 14,000 people, and the layoffs could affect thousands of employees, not counting contract employees of which Yahoo has many and who are almost always the first to go when layoffs start.

New Yahoo CEO Scott Thompson has been discussing with both Google Inc. (NASDAQ: GOOG) and Microsoft Corp. (NASDAQ: MSFT) the sale of Yahoo’s advertising technology and perhaps even its search business to either company. Those two areas of the company employ about 2,500 people.

Thompson is also discussing a re-organization of the company into two divisions: a global media group comprising the communications and search businesses; and a global sales group. A relatively small R&D group may also survive.