Report: Yahoo Could Shed 700 Workers Today

From DailyTech: Thing's aren't holly jolly at Yahoo headquarters and some employees are about to get a Christmas surprise they don’t want. It's no secret that Yahoo has been struggling with profits and key worker defections, and today reports are coming in that Yahoo plans to announce more layoffs.

The Associated Press reports that Yahoo is looking to lay off 600 to 700 workers and that the announcement of the layoffs could come as early as today. The latest round of layoffs is being precipitated by poor growth. The number of workers Yahoo will cut is about 5% of the total workforce which numbers 14,100.

There have been three other layoffs in the past three years as the company struggles to get back to the growth management wants. The group of layoffs rumored for this week will reportedly be from the Yahoo U.S. products group.

Rumors were flying earlier this month that AOL was looking to break itself up and was eyeing a possible merger with Yahoo. With both AOL and Yahoo hurting financially, the time may be ripe for a merger of the two firms in an attempt to shore up finances for both companies. Yahoo has seen its stock price tumble 31 cents per share this week to close at $16.70 per share. That amount is slightly lower than where Yahoo stock ended last year.

Current Yahoo CEO Carol Bartz insists that Yahoo is headed in the right direction to return to robust growth. However, Bartz says that it could be a year or more before Yahoo improves significantly financially.

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