by Playfuls Staff |
31st January 2008
Yahoo confirmed rumors that it will lay off some of its employees, following the abrupt profits fall reported recently.
The search engine giant will have to fire about 7% of its employees [more] (1,000 people) in order to cope with the 23 percent profits decrease in Q4 2007. Jerry Yang, the founder of the company, said the lay-off are necessary to keep the company competitive on a market where Yahoo has the highest level of revenue-per-employee.
The massive firing is the largest in the company's history, trailed only by the "dot-com bubble" deflation, when Yahoo was forced to part ways with 650 employees. However Yang didn't mention which areas will be affected by the job-cuts, stating only that more details will be made available in early February.
"This sort of transition takes time," Yang said in a conference call with analysts Tuesday. "But we have the talent and the strong cash flow it takes to succeed."
Yahoo currently employs around 14,300 people.
