More sacking news this season. Yahoo had announced some time back that because of an unhappy economic year, it is going to reduce its numbers and lay off about 1000 employees. Yahoo! India has taken the lead in this it seems by announcing the cuts. About 40 employees were given the pink slip.
I think this is a preliminary number and we may see further heads roll. Yahoo employs around 1,500 people in the country with the Research and Development division itself having around 900 people. The first 40 that were asked to leave were from Bangalore R&D office.
(The joke in India though is that anybody on bench is referred to as part of R&D. No project means one has to keep busy by learning and passing time, hence R&D. Albeit this was applicable only to service companies like TCS, Infosys etc. Yahoo R&D of course may mean the actual R&D).
Yahoo employees describe the company atmosphere as akin to a graveyard. Employees have been waiting in fear for that email informing them about their dismissal. There is some solace at hand though, management is being upfront in telling the workers that its a business decision and not giving it a facade of poor performance etc. unlike some other companies which laid of recently.
Yahoo recently gave a snub to Microsoft’s hostile bid saying the price offered was too low. Although Yahoo is the top most portal in many countries of the world, it is facing stiff competition from Google which has a better, popular Search Engine and a stronger business model in terms of revenue from monetizing on the net with AdSense.
Yahoo has some top online tools like Flickr and has had considerable success with them, but there have been some flops as well, like Yahoo 360Â°, a sort of a social networking site which could not garner much fan base.
The next few weeks remain crucial for Yahoo! The events in the new few weeks will decide what kind of trajectory will the company follow in the coming decade.