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New Yahoo CEO Scott Thompson is “liklely” to fire thousands of employees, Kara Swisher reports.She writes: “While Yahoo has been subject to numerous layoffs over the years, none has been as large as what is now being contemplated to slash costs.”
Boston Consulting Group will help Yahoo figure out whom to can.
Timing: end of the month.
Yahoo has 14,000+ employees. It has software development contractors who will also face cuts.
Swisher says people working in public relations, marketing, research, marginal businesses and “weaker regional efforts” are most likely to be targeted.
Thompson joined Yahoo in January, after the company fired its last CEO, Carol Bartz, in the Fall.
Bartz was let go because her biggest triumph as Yahoo chief was increasing profitablitly by cutting costs.
She was unable to grow Yahoo’s revenues or put the company into any new lines of business that showed short-term results and long-term promise.
Thompson will need to pull off both tricks – cutting cost and growing Yahoo’s revenues – to succeed.
These layoffs will help with costs. We hope that Yahoo can be done with them in one go.
As for growing Yahoo’s business, Thompson’s only effort so far has been to shake down Facebook with patents.