Yahoo HR Prepares For Deep Cuts

Confirming prior reports of layoffs, internal sources tell Kara Swisher that Yahoo CEO Carol Bartz not only plans to fire 500 or more employees in June, but that she’s also looking at “a complete lopping off or sale of various business units.”

These sources say Yahoo HR is re-familiarising itself with the WARN Act, which is required in cases where a company shuts down entire facilities or operating units and fires 50 employees as well as when it fires more than any 500 employees at a time.

Back in late February, Carol capped an email to employees about yet another re-org with a promise that it would be the last for a while:

“I know you guys have reorg fatigue. Hang in there–our intention is to leave this structure in place for two to four years. We’ll continue to make adjustments as needed, but we expect this core structure to stay put.”

On the positive side, this layoff and re-org could actually position Yahoo well for the next several years.  It might also mean Yahoo is finally closing in on a deal with Microsoft (MSFT). If Yahoo were to exchange its search business for Microsoft’s display business, as its reportedly considering doing, a large re-organisation of resources would definitely be required.

We just hope Carol cuts deep and swift enough that she won’t destroy the company’s remaining morale.

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