A source close to Yahoo reports that Jerry Yang has decided to go forward with aggressive layoffs. The source believes the layoffs will be announced on the company’s conference call this week and that the final number will be likely be in the 1,500-2,500 range we reported last weekend, rather than the “hundreds” reported in the NYT and elsewhere.
The source believes that the list of names was being finalised over the weekend and that some of the soon-to-be-terminated employees will not be told until February 12th.
Based on the 20% bounce in Yahoo’s stock price at the end of last week, we suspect news of the layoffs has already been partially incorporated into the price. Layoffs of more than 1,500 would be an incremental surprise (bad from the perspective of whacked employees, good from the perspective of investors). We estimate the financial impact of a range of headcount reductions here.
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