• D: All Things Digital, Thursday, September 25, 2008 12 PM

As the overall economy worsens, BoomTown writer Kara Swisher warns readers that "Internet companies are in the midst of reevaluating their troop numbers to streamline themselves for the coming few months of financial winter."

For example, sources at Yahoo reveal that the ailing Web giant wants "to get itself sized right" for the expected downturn in display ad growth. Swisher points out that it's particularly important for a leaner, meaner Yahoo to present itself to shareholders for its third quarter earnings call on Oct. 21, because "cost cuts...do make the bottom line look prettier."

Indeed, HP's recent job-cut announcement could have been the start of a trend for Silicon Valley. Swisher suggests that eBay might be next in line, as the area's unemployment figures rose in August to a four-year high. Even Silicon Alley startups are showing a slowdown in hiring new talent.

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