Yahoo Plans Massive Layoffs

By: Jennifer Hong
Staff Writer
Published: Nov 23, 2008

Yahoo is planning to cut 10 percent of its workforce. The 1,500 job cuts mark the second time in nine months that Yahoo has resorted to mass layoffs. CEO Jerry Yang announced last week that he is exiting from the Internet search engine company.

Yahoo Inc is planning to cut up to 10 percent of its workforce in an effort to save costs. A recent third-quarter earnings report show that Yahoo had a 64 percent drop in its net income. The company said it was hurt by higher costs in operating expenses.

The job cuts will affect 1,500 employees. Analysts blame the financial troubles on company mismanagement. Management blames it on the current global recession.

"We are going into what is very clearly a recession mode," Blake Jorgensen, Yahoo's chief financial officer, said in a statement.

The search engine company is expected to trim $400 million from its annual costs of $3.9 million well into 2009. Yahoo might close some of its offices and assign jobs to lower cost contractors to save money.

Yahoo CEO Jerry Yang announced last week that he is exiting from the Internet search engine company.