Realignment is the way of the Web portal. In some areas of Yahoo's business there will be cost cutting via layoffs, but there is also a major announcement on content expansion.
Rumor
has it that Yahoo is cutting anywhere from 10 to 20 percent of its consumer
products division which could be between 650 and 2,500 individuals by the end of
the year, according to anonymously sourced reports from TechCrunch and AllThingsDigital. Yahoo disputed the numbers will be as high as 20 percent, but
declined to elaborate any further on layoff details.
"Yahoo is always evaluating expenses to align
with the company's financial goals," said a Yahoo spokesperson in a statement.
"However, a 20 percent reduction in Yahoo's workforce across the board is
misleading and inaccurate."
TechCrunch is sticking by its figures from its
sources, and based on Yahoo's statement, some workforce reduction plans have
not been denied. In its most recent third-quarter earnings report, Yahoo was
upbeat about its realignment plans operating margins and revenue streams.
"We've made substantial progress this year toward
executing our strategies for enhancing profitability and resuming revenue
growth. Margins are expanding; owned and operated display advertising is up 18%
so far this year; product rollouts are accelerating thanks to modernization of
our underlying platforms; and we continue to implement our search alliance with
Microsoft on schedule," said CEO Carol Bartz in a statement. "We've disposed of
non-core assets while making strategic acquisitions like Associated Content and
Citizen Sports, and we've developed key partnerships with Facebook, Twitter,
and Zynga to enhance the Yahoo experience for our 600 million users."
While layoffs appear to be looming, the
14,000-plus employee Web portal is also ratcheting up its crowd-sourcing
content with the goal of cranking out more than 2,000 pieces of original content a
day by using more than 400,000 freelance workers. The Yahoo Contributor Network as
it will be known was born out of the purchase of Associated Content in May this
year.
"With the launch of the Yahoo Contributor
Network, our contributors now have an unprecedented opportunity for
exposure
and distribution across Yahoo's portfolio," said Luke Beatty, vice
president and general manager, Yahoo in a statement. "Associated
Content
has been known for maintaining the industry's largest contributor base,
and
with the launch of the Yahoo Contributor Network, we've added scale
and reach
that sets us apart from any other crowd-sourced media platform."
Google recently announced pay raises of 10 percent for all employees, but fired the employee who revealed that
information to the press.
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