Lost in the din of the commotion about Microsoft’s hostile bid for Yahoo was the announcement on Tuesday that Yahoo would be cutting 1,000 jobs, approximately 14% of its headcount. The announcement was made at the tail end of last Tuesday’s Q4-2007 report which showed a 23% decline in quarterly revenues from the same period in 2006.
Yahoo CEO Jerry Yang admitted the company is vastly overextended saying its focus in 2008 would be on, “… becoming a starting point for the most consumers on the Web; making the company a top choice for marketers seeking to place ads not only on Yahooâ€™s properties but also on sites across the Web; and opening up Yahooâ€™s technology infrastructure to third-party programmers and publishers.”
The job cuts are expected to hit in mid-February and were anticipated by industry observers as a signal showing where Yang really expects to take the company. All assumptions have been put aside in light of Microsoft’s $44.3 billion bid which was made public last Friday. Industry watchers are now hoping the layoffs give us a clue as to how the Yahoo Board of Directors intends to respond now that ownership of the company is in question.