Yahoo to Lay Off Thousands, Says Report

A new industry insider report suggests Yahoo may be preparing for a major corporate overhaul that could result in thousands of employees losing their jobs, possibly before the end of March, 2012.

Right now the company employs more than 14,000 people worldwide.

While the report has received no official confirmation from Yahoo, analysts familiar with the company believe the rumor probably contains more truth than fiction.

The report comes from "AllThingsD", an online publication that "specializes in technology and startup company news, analysis and coverage." (Source: wikipedia.org)

It says that most of the "thousands" of cuts would come at the expense of the company's public relations, marketing and research divisions.

Analyst Backs Report; Suggest Big Changes Coming Soon

AllThingsD, which is a Dow Jones-owned news site, won't name its sources. However, that hasn't stopped industry analysts from weighing in on the topic.

"I wouldn't be surprised to see Yahoo lay off thousands," said Gabriel Consulting Group analyst, Dan Olds. (Source: computerworld.com)

Mr. Olds believes the layoffs could be part of a major reorganization that would help facilitate the adjustment of Yahoo's priorities.

"Reading the tea leaves, I think that there's a plan in place to focus Yahoo more on gathering, analyzing, and making money off of user data rather than their traditional portal content and media serving," Olds said. (Source: computerworld.com)

Restructuring Nothing New for Troubled Yahoo

The last few years have been tough for Yahoo, which has been one of the Internet's most valuable brands.

However, a failure to adjust to fluctuations in the search engine market, and to accommodate the rise of social media, have left the company lagging far behind it main competitors: Microsoft and Google.

Last September, Yahoo replaced its long-serving CEO, Carol Bartz. Not long after that, the company's co-founder, Jerry Yang, also left.

Still, analysts note there's hope yet remaining for the firm, which reported $1 billion in net income last year. (Source: mercurynews.com)