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Hard Times At Yahoo See 14% of Global Workforce Cut

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(Image: Stock.xchng)
(Image: Stock.xchng)

BUSINESS

  • Nearly 2,000 employees to be cut
  • Move expected to save $375 million annually
  • Skype hiring 400 more staff

For the sixth time in four years, one of the world’s most popular websites Yahoo has laid off more employees. This time approximately 2,000 staff were given severance packages and told to leave, which accounts for 14% of Yahoo’s global staff.

It is anticipated the company’s product division suffered the greatest losses although layoffs were expected in all departments. 

Yahoo says the cuts will save $375 million annually, and are part of making the company smaller, nimbler and more profitable.

While it is still a top-ranked site, Yahoo has struggled in recent years to compete with Google and Facebook. It is also involved in a legal dispute with Facebook over technology patents.

The layoffs are part of CEO Scott Thompson’s restructuring, and come just weeks after major management overhauls. Thompson was appointed chief executive officer in January.

In a written statement Thompson said: "We are intensifying our efforts on our core businesses and redeploying resources to our most urgent priorities. Our goal is to get back to our core purpose - putting our users and advertisers first - and we are moving aggressively to achieve that goal."

Skype Adding Jobs

While Yahoo is cutting jobs, another internet leader, Skype, is adding them. The Internet video calling business, which is owned by Microsoft, has said it plans to add 400 employees taking its total to 1,600 globally.

Positions are expected to be added in London, Stockholm, Prague, Palo Alto in California and Tallinn in Estonia.

The majority of the positions will be in London, where staff will grow by 40% to 330 positions. The jobs will be in design, product management and software engineering. 

Skype’s move indicates it is not concerned with proposed legislation in the UK, which would allow federal security services to have increased access to the internet for the purpose of monitoring people’s activities. Skype is one of the services the government has said it wishes to monitor.

Skype does not store user communications on its servers, and therefore could not hand over information to the government.

The first stage of the hiring process is expected to be completed in June.

Key Statistics - Search Engine Rankings 2012 (source: comScore)

  • Google grew by 1.2% from December 2011 to 66.2%.
  • Bing grew by 0.1% to 15.2%.
  • Yahoo fell by 0.4% to 14.1%.
  • Ask grew by 0.1% to 3%.
  • Only AOL remained the same from 2011 at 1.6%.

By Melina Druga for
Melina Druga is an American writer and editor. She is the author of Enterprising Women: Practical Advice for First Time Entrepreneurs.

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