How long before Yahoo finally implodes? The latest signs aren't good. Lack of growth is being blamed for the latest round of job cuts – which, at the worst time of year, will represent as much as 5% of Yahoo's workforce, or 650-700 people.
A formal announcement, after several weeks of speculation, is expected later today when staff are officially notified.
Over the weekend, senior developer Zach Graves tweeted: "The number of people carrying boxes out of yahoo tonight is not surprising, nor the last of it."
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This is the fourth major round of staff cuts in three years and is expected to focus on US-based staff in Yahoo's products group, which is responsible for the company's consumer and advertiser-focused products. Blake Irving was recruited to run the group in April this year.
TechCrunch recently claimed the firm would be recruiting internationally, including in Bangalore, to cover some jobs being cut in the US.
After heading off that Microsoft takeover and recruiting Carol Bartz to rejuvenate the company, Yahoo has failed to show any significant signs of a turnaround. Bartz's contract expires in 2013, and she'll be under pressure to leave if she can't reverse Yahoo's fortunes by then. Its share price fell on Monday to $16.70 when markets closed; Google, in contrast, closed up at $594.62. Realistically though, Yahoo's problems are bigger than Bartz.
As Facebook founder Mark Zuckerberg reminded us in that CBS interview last week, Yahoo had the opportunity to buy Facebook back in 2006, and way back when even had the chance to acquire Google. Things could have been so different.