Yahoo To Slim Workforce Amidst Dropping Profits
01.29.08 - 11:40pm
As per the title, it looks like Yahoo was weathering a rough winter and I imagine this trend will only continue as Google continues to take over more and more of the web. Dropping 1,000 employees to trim their budget sounds like a start in making the company more efficient but this is only a temporary solution. With a 14,300 large workforce, trimming 1,000 workers could potentially weed out some of the less productive workers but with a web service, you can’t trim too many creative individuals or you’ll collapse and dry up. Unique acquisitions like Flickr are a great route to pursue though as they’ll potentially become immensely popular while retaining a large and active population and most importantly, be profitable. Chopping your workforce will only sustain you for so long, sounds like it’s time to gamble with some more startups, a true HD Video startup would do the trick so long as Google doesn’t up the quality on YouTube.
Source: News.com
This probably has a lot to do with the US (and the UK) heading toward a recession. Although personally I don’t use flickr it always seemed to have massive potential. I’m suprised they haven’t done much with it.