Yahoo Confirms 2,000 Employees Getting the Axe

After several days of rumors, first reported by AllThingsD, Yahoo confirmed this morning that it’s restructuring and laying off 2,000 employees:

Today, the company will begin the process of informing employees about these changes. As part of that effort, approximately 2,000 people will be notified of job elimination or phased transition.

Yahoo! expects to realize approximately $375 million of annualized savings upon completion of all employee transitions. The company currently expects to recognize the majority of an estimated $125 to $145 million pretax cash charge relating to employee severance in its second quarter financial results. The company may incur additional charges in connection with this action . . .

Yahoo currently has about 14,000 employees. The company hasn’t indicated where the axe will fall. However AllThingsD’s Kara Swisher (based on her inside informants) speculates that layoffs will be across the board but hit several areas in particular:

The layoffs, which will touch all units of the company, are expected to hit hardest in the product division, which is headed by Blake Irving . . .

But the fate of two key parts of the soon-to-be-blown-apart unit — Yahoo’s advertising technology businesses, Right Media and APT, and its search business — is still being contemplated . . . Also set to be hard hit are Yahoo’s local businesses, as well as its marketing and research divisions . . .

Swisher further speculates that current Yahoo search chief Shashi Seth “is likely to run consumer products,” which will house whatever remains of Yahoo’s search business. It’s pretty clear, however, that whatever efforts Yahoo had been making around search innovation will be greatly diminished now if not entirely eliminated.

We’ll have to wait to see what remains of Yahoo after the dust settles — but it’s looking like not much. Oh the humanity.

Public domain image via US government archives. 

Related Entries

Related Topics: Channel: Industry | Top News | Yahoo: Business Issues | Yahoo: Employees | Yahoo: Search

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About The Author: is a Contributing Editor at Search Engine Land. He writes a personal blog Screenwerk, about SoLoMo issues and connecting the dots between online and offline. He also posts at Internet2Go, which is focused on the mobile Internet. Follow him @gsterling.

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  • http://www.seo-theory.com/ Michael Martinez

    It’s official: Yahoo! is still looking for someone who can provide real leadership and vision.  Carol Bartz, Jr. is obviously not the right guy for the job.

  • http://about.me/evanjacobs Evan Jacobs

    I disagree. Yahoo! has needed a hard purge for a while now and I doubt they are getting rid of people pulling their weight. In a company of 14,000 people, statistically, there is a lot of fat that can be cut.

    A brutalist point of view? Definitely. But Yahoo! is in business to make money and they need to restructure to become competitive again.

  • http://www.seo-theory.com/ Michael Martinez

    Carol Bartz gave Yahoo! multiple hard purges and all she did was degrade the company’s most valuable asset: its employee base.  This kind of stupid, short-sighted, knee-jerk reaction is what corporate boards of directors demand when people are screaming “all hands on deck”.

    Carol Bartz, Jr. needs to put an action plan in place FIRST, not SECOND.  He clearly lacks the vision to refocus thousands of employees who can create value that he cannot go out an buy.

  • http://pulse.yahoo.com/_VENS6N5PPPFC3JCTNWZQAYWV6M brody

    does yahoo think they can make money from selling ads and news articles, What a joke!

  • Jake Tomberlin

    What do you think Google does to make billions of dollars each year?

  • Lionel Ben Naceur

    They have Adwords ;D

  • http://www.facebook.com/people/Aiden-Moor/100001939456401 Aiden Moor

    Ohh….. feeling pitty………. A great sympathy for Yahoo……..

  • http://twitter.com/manojpallai Manoj Pallai

    Okay, they are may be one one weapon for yahoo!

  • http://www.facebook.com/people/Dylan-Benton/11822470 Dylan Benton

     I’m watching you….

  • http://www.robertreeveslaw.com/traffic-accidents/California-Car-Accident-Lawyer.html Car Accident Injury Attorneys

    That’s really sad. I heard Yahoo tried (and failed) to buy Google. Poor Yahoo. :(

  • http://www.facebook.com/Ayaanahmedz Web Optimizer

    We’ll have to wait to see what remains of Yahoo after the dust settles — but it’s looking like not much. Oh the humanity.

  • http://www.facebook.com/profile.php?id=1370220284 Max Soni

    Yahoo has been overbloated for years now, they’ve been on a slow and steady downward turn for ages. This was needed in order to get out of the down-ward slump they have been in

    http://www.soniconsultants.com

  • http://www.askforeman.com/ Stephen Foreman

    The problem is they just can’t compete on any level with Google. As Marketeers, we should really worry, as if there is no good competition to Google globally then Google’s monopoly may dominate and then they can do what they want like hiding keywords in Analytics and… oh wait.

  • SyedMazharShah

    Yahoo should copy Google.. In this way they can get some of revenue..

  • http://www.facebook.com/people/Stuvert-Broad/100002951078884 Stuvert Broad

    It’s common in Yahoo……

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