Yahoo Will be Laying off Staff and Outsouring Search to Google?
A number of reports have surfaced that Yahoo! is going to lay off around 1.500 of its staff and outsource its search either to Microsoft or Google.
A report have surfaced that Yahoo had already came up with a list of people to layoff:
“A tipster believes Yahoo has created a list of 1,500-2,500 jobs that may be eliminated in the next two weeks. CEO Jerry Yang will reportedly make the decision to go forward with these layoffs–or not–next week.”
The primary reason for this is the downside slope of Yahoo Inc., continuing to lose large share of its customers both in search and in portals. It seems no matter the choice Yahoo! offers there is a better alternative.
“We want to do everything and be everything — to everyone. We’ve known this for years, talk about it incessantly, but do nothing to fundamentally address it. We are scared to be left out. We are reactive instead of charting an unwavering course. We are separated into silos that far too frequently don’t talk to each other. And when we do talk, it isn’t to collaborate on a clearly focused strategy, but rather to argue and fight about ownership, strategies and tactics. Our inclination and proclivity to repeatedly hire leaders from outside the company results in disparate visions of what winning looks like — rather than a leadership team rallying around a single cohesive strategy.”
Right now Yahoo! stock trades at 20.73 with a chance of going below 20.
Statistical data from Hitwise and Comscore suggest that Yahoo kept loosing its search to share Google in 2007, while Google again, experienced a well executed addition to its customer base.
Search Engine Watch reported on WSJ article where wsj suggest that Yahoo might outsource some its search Google as well as cut around 1.500 in order to save it declining stock.
Talks at Webmaster World speculate, in a case of outsourcing will it be Google or Microsoft?
"Even if the rumor was true, I’d think Yahoo would outsource to Google - for a couple of reasons:
1 - Live.com is clearly still struggling with even the basics like 301s.
2 - MSN and Y! compete heavily in the portal space, while Google does not.
3 - Live would viewed as a step back for Y! while Google would be perceived as an improvement.
I have to admit, that it would be a shame for Y! to give up."
" …they will be announcing the layoff of 1500-3000 folks at the end of this month at Yahoo and there is serious rumor of outsourcing search again as was in the old days."
Nevertheless, SEO Expert does not think that Yahoo will outsource its search anywhere. Though the layoffs are still rumors, if they proceed, Yahoo staff will definitely be shaken up quite a bit.
The best step for Yahoo! would be to improve its search and to invest more in algorithms technology, as outsourcing to any of the two competitors will look like monumental defeat.
