Yahoo set to layoff 600 employees‎

Alarmed at the decreasing revenues, Yahoo is planning to disband 600 employees from their workforce as a cost cutting measure. Those employed at Yahoo’s Sunnyvale advertising product and email services group are likely to be most affected. This is seen as an effort to reposition Yahoo and put it on the revenue growth platform. The company wants to shift focus and plans to grow on its core competencies of web based products and display advertisements.

Lacking a company wide roadmap, Yahoo was unable to fulfill the requirements of company specific demands even as they focused their attention on products at the regional level. Yahoo is planning to merge the regional and product based groups to synchronize their efforts and avoid duplication and regularly monitor revenue collections and commitments to stay afloat.

This is their third work force reduction exercise, after their 1400 workforce reduction in 2008 and a 5% cut in in 2009. The trend at Yahoo is discouraging even as their competitors like Google and Facebook are on an accelerated growth trajectory. Both competitors are recruiting top notch talent, which is a sign of positive growth. Yahoo Shares plunged 0.4% down to $16.63