Yahoo aims to cut spending by US$400 million following its third-quarter report, which showed a 64 per cent plunge in profits. The portal will lay off 1,500 staff worldwide by the end of the year to help achieve its budgeting goals.
While Yahoo executives in Southeast Asia have not yet been notified of the extent of staff layoffs, a spokesman said he hoped the impact would be lessened in the region because of Yahoo’s success. The site is the leading portal across Southeast Asia. He also noted that Yahoo would continue to launch new products in the coming weeks.
While Yahoo executives in Southeast Asia have not yet been notified of the extent of staff layoffs, a spokesman said he hoped the impact would be lessened in the region because of Yahoo’s success. The site is the leading portal across Southeast Asia. He also noted that Yahoo would continue to launch new products in the coming weeks.
Managing partner of Third Space Consulting Nick Fawbert - who was Yahoo’s head of sales for the UK and Ireland from 2002 to 2004 - agreed that Yahoo would do well to preserve as much of its regional staff as it can afford. Western companies often cut jobs abroad in order to preserve their base in markets such as the US, he said.
“One of the challenges with struggling global corporate businesses is making blanket decisions on cutbacks that don’t take into account local conditions,” he said. “Asia-Pacific represents a huge opportunity for Yahoo at a time when investment is likely to reap big rewards.”
Yahoo has struggled recently following its rejection of a proposed merger with Microsoft. The deal would have paid Yahoo US$47.5 billion.
