If the reports of layoffs are true, there probably will be quite a few.

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, people close to the company said Monday.

The final number of layoffs from YahooÂ’s work force of about 14,000 is yet to be determined and is likely to be announced around the end of the month, perhaps during YahooÂ’s conference call on Jan. 29 with analysts after it reports fourth-quarter results, these people said.

Company executives are still trying to determine exactly which areas will be cut. One person close to the discussions said a final plan, or perhaps a few alternative plans, would be submitted to the board at a coming meeting. The planÂ’s final shape may be influenced by the companyÂ’s fourth-quarter performance, this person said.

Yahoo declined to comment specifically on any plan for layoffs. In an e-mail statement, a company spokeswoman, Diana Wong, said: “Yahoo plans to invest in some areas, reduce emphasis in others, and eliminate some areas of the business that don’t support the company’s priorities. Yahoo continues to attract and hire talent against the company’s key initiatives to create long-term stockholder value.”

Some blogs have reported a 10-20% reduction in force, but analysts are viewing that as unlikely. However the report of "hundreds" being laid off could still be a reduction of 5% -- a significant amount indeed. WIll other tech companies follow suit?

Posted by: Greg at 10:48 PM | Comments (1) | Add Comment
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