The ‘sphere is buzzing with “anonymous” tips that Yahoo CEO Jerry Yang will soon be faced with the tough decision of firing up to 2.500 employees.
Jerry reportedly wants to announce the cuts with or before earnings (January 29th), but may not make them if the stock price recovers.
We believe Yahoo should reduce headcount by at least a thousand people, and others are looking for cuts of more than twice that. Yahoo’s stock has recently hit new lows, almost all of its key businesses are losing ground to Google, and shareholders are beyond frustrated. Jerry Yang, moreover, is perceived as a good guy who is unwilling to make the hard-ass decisions necessary to get Yahoo heading in the right direction again–a perception he is presumably eager to dispense with.