Yahoo CEO Email Tells Of Sweeping Layoffs?
There's little chance that telegrams bring good news; likewise can be said when your email inbox suddenly shows a note from the CEO with the words, "Time for another update."
That's what is greeting thousands of Yahoo's at this hour. (Thanks "M" for sending it along.) Following the company's big unveiling of its new display advertising upgrade today in New York called Apt, which is supposed to do what another upgrade called Panama couldn't, and just ahead of Yahoo's big advertising get-together with Google, despite all that hand-wringing by the Feds over whether to challenge it or not, now there comes word of what could be sizeable cutbacks at the company.
CEO Jerry Yang let the troops know that Yahoowould be hiring Bain & Co. "to work with the leadership team on identifying ways to leverage our strengths, and improve and accelerate our performance." And while Yang highlights "some great progress this year," having "accomplished a tremendous amount and we're all working hard to continue executing on the company's strategic plan," he says in the very next paragraph that the company is continuing "the work already underway to get fit as an organization."
He says Yahoo is looking for ways to make "process and structural changes to our business that will allow us to work more efficiently." Gettin' "fit" means getting "smaller." And that means job cuts.
- Yahoo And Its New Ad Platform "APT"
- US ad spending in steepest drop since 2001
- Google/Yahoo Ad Deal Keeps Stirring Up The Controversy
He concludes his short note by saying that Yahoo "can benefit greatly from more discipline among all departments and functions across the company. Longer term, getting fit now will enable us to be more successful moving forward."
Translation? Sounds like sweeping layoffs are on the way in Sunnyvale. Seems like Yang, Bain and team are getting ready for a big round of cuts. If you've got details on numbers and departments, send 'em along. Sounds like it might be a few weeks before we get actual numbers on the size of all this.
In the meantime, to borrow a phrase from a weatherman I used to work with in this market as our station was gearing up for a big round of cutbacks several years back: The forecast is for partly cloudy skies and scattered resumes throughout the Silicon Valley.
Questions? Comments? TechCheck@cnbc.com