We contacted Yahoo for comment. They responded “we do not comment on rumor or speculation.” Also no word on whether CEO Carol Bartz might be willing to take a pay cut to a more palatable, say $10 million/year. That $30 million would allow Yahoo to keep 300 employees on at a more than respectable $100k/year.
Update: Yahoo says via a statement that we’re being “misleading and inaccurate.” “Yahoo! is always evaluating expenses to align with the company’s financial goals. However, a 20% reduction in Yahoo’s workforce across the board is misleading and inaccurate.” I’m sticking by this story based on our sources, and all have confirmed that managers are being asked to target 20%. Perhaps they’re finding wiggle room in the total percentage, or what employee groups are affected (U.S. v. international, etc.) Also, given how widespread this information is within Yahoo’s ranks, I don’t see the point of denying the plans.
7 7
Authors: Michael Arrington