With Jerry now officially a lame duck, what is likely to happen to the mass firings and other cost cuts Yahoo has already announced? Will they happen as planned? Will they be larger than 1500 Yahoos? Will they be put on hold until Jerry’s successor takes over?
We have no inside info, but we suspect the already announced cuts will be carried out as planned. Yahoo needs to reduce costs, and by almost any measure its workforce is too large.
Unfortunately the arrival of a new CEO could easily mean the ordering of another round of cost reductions shortly following the first. New CEOs often like to push reset by drastically cutting costs, and Yahoo has a lot to cut. As we’ve discussed, we think Yahoo would be sized appropriately if it cut its workforce by 3000, or more than twice the cuts that have already been announced. We would not be surprised if a new CEO came to the same conclusion.
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