Yahoo, one of the world’s leading Internet service providers, is planning to lay off almost 10 percent of its employees, a move to cut costs in this weak economy.
According to a report from The Wall Street Journal, the Internet company does not provide the exact number of employees who will lose their job, but the assessment is that it would be more than 1000 workers.
The newspaper also reported that the company’s share price has dramatically declined to almost 40 percent over the past three months. This steep decline is the result of many factors, one of this is the highly competitive market where the company is reportedly beaten up by Internet big wigs such as Facebook, Google, and MySpace. Another factor which contributed to the company’s financial decline is the weak economy which had forced advertisers to cut their spending.
On May, Microsoft attempted to takeover the company, but was not successful as the two did not agree on many issues, especially on the amount of money that has to be paid. Microsoft offered Yahoo $5 billion per $33 share, but the latter rebuffed its offer stating that their worth is more than Microsoft’s proposal.
Meanwhile, Yahoo is now planning to merge with another Internet giant Google but the deal is still being examined by the US Justice Department to make sure that this would not pose any legal conflict.
But with this plan, high ranking officials and executives of Yahoo have announced their resignation as their way to express their lost of confidence to the company’s financial and market approach.
Apart from this merger discussion, the company is also considering to make partnership with AOL which is owned by Time Warner Inc.
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