Around the Net

More Cuts Than Expected, And Another Reorg At Yahoo

More layoffs are coming to Yahoo, and another reorg, too, notes Kara Swisher, who says that "even more top-level managers are either leaving or being moved around." The New York Times had the initial scoop, saying that the layoffs would be announced during the company's earnings call Tuesday. Analysts expect these earnings to be weak; hence, the layoffs.

However, Yahoo sources tell Swisher that management is bracing for cuts that may top 500, which could mean that CEO Carol Bartz is planning to either shut down or sell off whole business units. Some said the new round of cuts might not happen until June, and that Yahoo HR is preparing to follow the rules required by the "Worker Adjustment and Retraining Notification Act," which requires the company to give no less than 60 days notice "in advance of covered plant closings and mass layoffs." Yahoo issued WARN notices in its last two layoffs, in which 2,500 jobs were cut.

"The last reorg was a blunt instrument, so now (Bartz) is starting to surgically move people around or even out, after seeing what staff can and can't do and what fat there still is," says one source. Swisher also notes that company managers continue to leave on their own, particularly top engineers, who are increasingly heading to Microsoft to work under former Yahoo search leader Qi Lu, who is now Microsoft's top online exec.

advertisement

advertisement

Read the whole story at D: All Things Digital »

Next story loading loading..