Yahoo Announces Layoffs

by Darren

New CEO Carol Bartz is not timid about wielding her axe to cut costs at former internet high-flyer Yahoo. The cuts are expected to be announced next Tuesday, when YHOO also releases earnings for the first quarter of 2009. According to the New York Times, several hundred jobs are expected to be snipped.

Yahoo has already cut around 2,400 jobs in the last two years as their market share declined in light of increased competition from Google. There are now slightly more than 13,000 employees at Yahoo.

Yahoo has really lost ground in the display-ad business as advertisers switched to different ad networks, in particular to Google. Yahoo, like many online giants, has decreased the price of ads in the face of diminishing demand.

Google is also expected to announce an erosion in sales revenue, although it’s not likely to be as dramatic as it was for Yahoo.