Kara Swisher, last seen immersed in the great Yahoo hanging chad scandal, is back with news that will be more pertinent to Yahoo employees and shareholders: The company, she says, is considering yet another round of cuts.
Kara surmises that cuts will be the outgrowth of two “navel-gazing strategy overview efforts” codenamed Aikido and Judo. But really, they’re a product of the fact that Yahoo is struggling with its top line, and is going to have take out costs in order to meet operating cash flow projections.
…according to several sources within the company, besides more efforts to streamline Yahoo in both [consumer products and advertising products], Aikido and Judo are more specifically looking at what cuts the company can make to meet aggressive financial goals it promised when trying to rebuff a now-defunct takeover bid by Microsoft.
Thus, as Yahoo faces economic headwinds, sources within the company said that cost cuts in a range of arenas across the board–such as in its media and mobile properties–are being considered to make the numbers promised.
“Yahoo barely made its second-quarter numbers and there is a definite ad recession now,” said one source. “So now we have to once again rethink everything to deliver what we said we would, and the only way to do that is through cost cuts.”
We’d previously noticed that the company had put on a not-quite-a-hiring-freeze in July, but as far as we’ve heard, the company is hiring once again. Per usual, Yahoos: If you want to share your insight with us, leave a comment below or use our anonymous tip box.
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