Steven Savage

I’ve been hearing about this story since yesterday: Yahoo is looking at some large layoffs.

Now this won’t surprise anyone because we’ve been waiting for this (while a lesser amount of us have been waiting for them to turn the corner).   Everything I’ve heard suggests a lot of non-tech cuts, dropping some products and lines (which will mean tech cuts) and general structure and focus work.  Considering the hiring of Boston Consulting Group, I’m not surprised.

Takeaways:

• Duh.
• This is probably Yahoo’s last chance to get it right.  However they aren’t ditching or selling themselves off, so there’s some plan there, or the vague illusion of one.
• This may be a slight blow to Silicon Valley, which hasn’t always done well adsorbing layoffs in tough times, but I don’t expect it to be too bad.
• Yahoo has got to get this right or give up.  Whatever this is, it’s the last chance before just being bought or selling themselves off in pieces.
• After the layoffs I expect a small uptick in hiring as they replace people they didn’t need to get rid of.  This has the smell of a “more than we need” chance to me.
• Frankly, I wouldn’t work at Yahoo unless you’re playing contrarian.  I’m not confident enough in their opportunities.
• Morale at Yahoo has got to be TERRIBLE.

– Steven Savage