The mass-sackings at Yahoo will only claim about 1500 jobs, Kara Swisher says, because Yahoo will not be “hacking” but being “surgical” (according to one executive). Well, that must come as a relief.
As of now, Kara says, the firings are scheduled for mid-December, which would put Yahoo square in the AOL-tradition Holiday Grinch camp. A week or two ago, we heard November, and, this week, we actually heard that business was so bad that they’d been moved up. But Kara’s probably got the latest.
One other fly in the ointment: If Yahoo and AOL actually manage to get their absurdly elongated merger negotiations done, Yahoo might push pause on its own layoffs until it figures how many people the combined company should fire (at least 4,000, in our opinion). So there’s that to think about, too, as you make your holiday plans.
[W]hat Yahoo’s top brass has already done is given its managers cost-cutting targets and not specific marching orders on laying off a certain number of people across the board.
In addition, the figures that top execs–such as SVPs Hilary Schneider and Ash Patel–have handed down to their minions is a process that includes considerable negotiating and manoeuvring among and between various managers. So, nothing is set in stone.
Thus, how Yahoo (YHOO) under-bosses reach those goals and what gets lopped does not have to necessarily be employees.
For example, a manager could table a project in the search area or perhaps not expand features planned.
Of course, slashing employee costs is always the easiest way to show significant cuts, and it does send a definite message to investors that Yahoo realises it must clean up its operations.
“But that’s hacking and we have to be more surgical,” said one exec involved in the process.