Archive: January, 2008

Big Changes Coming to Yahoo?

Monday, January 21, 2008
Posted by Jim Hedger @ 12:22 pm

Nearly nine months ago, co-founder Jerry Yang replaced Terry Semel as CEO of Internet search icon Yahoo. The change in management was necessitated by Yahoo’s continued second place showing to rival Google in search market share and Yahoo’s subsequent lagging stock performance. Yang came in promising to reshape Yahoo into the Internet power-hitter it used to be.

Yang took the helm at Yahoo on June 18, 2007. A month later he published an open letter outlining his hopes, dreams and challenges as returning CEO. In that letter, he stated outright that there were no sacred cows at Yahoo. “While our business continues to grow, we need to dramatically improve our performance and I intend to put us back on a winning path.”

Since then, nothing much has happened until now. This week, with share prices hovering in the very-low $20’s, it looks like Yahoo is finally making a move to satisfy frightened investors. Yang’s new broom is poised to sweep the house clean.

This morning, many search media outlets are reporting that major lay-offs are coming to Yahoo operations around the world. Over the weekend, infamous former analyst turned business blogger Henry Blodget, wrote that Yang had Yahoo division heads compile a list of 1,500 to 2,500 employees who are to be laid off.