The internet company’s poor performance has prompted another round of lay-offs at Yahoo. The company plans to cut 5% of its total workforce of 14,100 and will be the company’s fourth mass lay-off in the last three years.
The last two rounds of lay-offs took place under the stewardship of its current CEO Carol Bartz – brought in two years ago despite lacking experience in the internet or advertisement industry – Yahoo’s main revenue sources.
The latest round of downsizing is expected to happen in the products division in the US. The products division has already seen restructuring since the division head Blake Irving was hired by Ms Bartz last spring from Microsoft.
The job cuts were anticipated since the magazines TechCrunch and All Things Digital reported them as coming last month.
However, some people say that Ms Bartz’s job is on the line because of Yahoo’s sluggish growth, top management exits and lackluster stock market performance and she may step down before the expiry of her contract in 2013.
Yahoo’s revenue grew by 2% for the first nine months in 2010 to $4.8 billion and the company has been struggling to sell advertisement. Rival Google has reported a revenue growth of 23 percent to $21 billion for the first nine months. Another internet company – the privately held ‘Facebook’ has moved their headquarters to a new bigger premise to keep pace with their rapid growth.
Yahoos share price fell by 31 cents on Monday and closed at $16.70, lower than its last year’s close. However, the technology index NASDAQ has grown by 16% this year.
According to market speculations, Yahoo! is now the target of possible takeover by buyout firms. They may put together a joint bid with another iconic but embattled internet company, AOL Inc for Yahoo
The present CEO of the Sunnyvale, California based company has maintained that the company is on the path to recovery and the financials of the company will improve significantly in a year or two.