A Silicon Valley exec who knows Yahoo well takes issue with our endorsement of Yahoo’s coming cuts. It’s not that cuts themselves are bad, the exec argues. But they ought to be focused in one particular area — YHOO’s paid search business. The argument — Yahoo has some real strength, namely a huge brand and audience, but any additional efforts to make up ground with Google in paid search are bound to fail. Best to bail out now, and refocus.
Think you are way too positive- they are bleeding good people and search share. They will cut these people and things will continue to head down. Until they give up on search ads, stock is going to continually head down. Layoffs will hurt more than help until they stop doing things that aren’t working. Doing more with less is a losing strategy they have been on for years. This is more of the same.
The “bail on search” argument isn’t new — we’ve been hearing it since 2006. Our question to our readers: Do you think it could work? And do you think Jerry Yang would ever consider it? Sound off in comments below.
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