Internet major Yahoo is planning to cut 650 jobs or about five per cent of its total workforce, says a media report. "Yahoo, the beleaguered Web portal, plans to cut up to 650 jobs as soon as Tuesday," The New York Times reported citing a source. The planned cuts, representing up to 5 per cent of the overall workforce of 14,100 employees, are aimed at Yahoo's products unit, the report noted.
The product group, which designs and builds consumer and advertising services, is led by Blake Irving, a former Microsoft executive, who was hired by Bartz eight months ago. According to the publication, Yahoo spokesperson Kim Rubey declined to comment about the issue.
The layoffs come as Carol A Bartz, Yahoo's chief executive, tries to reduce costs amid sluggish growth in Yahoo's online advertising business.
They would be the latest in a series of purges at the company over the last few years. Bartz is trying to reinvigorate Yahoo, which has suffered from years of excessive bureaucracy and lack of innovation.
The company failed to capitalize on social networking a niche now dominated by Facebook and lost its battle with Google in search. To cut costs, Bartz handed over Yahoo's search engine and related advertising system to one-time rival Microsoft.
She also teamed with third parties to handle Yahoo's dating, job listings and real estate area. Meanwhile, Bartz has tried to build on Yahoo's strengths by adding editorial staff to its media properties and inviting amateurs to contribute news articles.
