Monday, April 27, 2009

Not Quite Shouting Yahoo! Anymore

Not Quite Shouting Yahoo! Anymore

http://tech.yahoo.com/news/ap/20090422/ap_on_hi_te/us_earns_yahoo

Yahoo, Inc. has announced that it will cut 700 jobs in its latest attempt at cost cutting. In line with analysts’ expectation, the company’s first quarter results were not good.

This is the third round of job cuts being undertaken by the company. Do we believe that Yahoo can get itself out of the sticky position it is in by cutting jobs? While job cuts are the fastest way to reduce costs, the company also has to deal with the fundamental problem of what has gone wrong with its strategy. As we all know, Yahoo has been losing advertising revenue to Google over the year. It is time for the think tank at Yahoo to think beyond job cuts, and devise a new strategy.

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