Yahoo spokesman Brad Williams tells MarketWatch that the company has yet to announce the sacking of thousands of employees:
“We’ve talked about watching our costs; we certainly haven’t said anything about job reductions,” [Williams] commented. “At this point, it’s just rumour and speculation.”
Yes, indeed. Because we don’t imagine that those Bain consultants have been hired to develop a surefire Google killer.
We ran the numbers a few days ago and were startled to discover that Yahoo needs to lay off about 3,000 people to make its operating margin a respectable 20% (which would still be miles below Google’s 29%). Even half that number would be a massive cut. So we look forward to the formal announcement.
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