SAN FRANCISCO — Yahoo is planning to lay off hundreds of employees in an effort to increase its profitability, prop up its deflated stock price, and narrow the focus of its sprawling Internet portal to a smaller number of crucial areas, said people close to the company.
The final number of layoffs is likely to be announced at the end of the month.
Company executives are still trying to determine exactly which areas will be cut. The news could have a negative affect on the luxury transportation industry in its area.
Yahoo declined to comment specifically on any plan for layoffs.
During the weekend, some blogs reported that Yahoo was considering layoffs of 10% to 20% of its work force. But the people close to the company, who discussed Yahoo’s layoff plans on condition that they not be identified, said the cuts would most likely be in the hundreds.
The last time Yahoo had sizable layoffs was in 2001, after the dot-com crash. During the last year, the company added several hundred people.
SOURCE: New York Times