In the midst of a potential take-over by Microsoft, Yahoo has announced it is letting go of over 1,100 employees. Among them is the entire Yahoo Design Innovation team which is responsible for next generation design projects. The list of projects they were working on is now redirected to this site.
And the pink slips did not stop there. A bunch of top tier executives have been fired or hastily moved out as well:
* Susan Mernit, Senior Director, Product at Yahoo!
* Salim Ismail, Head of Brickhouse, Yahoo’s internal “˜ideas factory’
* Bradley Horowitz, Head of Yahoo’s Advanced Technology Division
* Jessica Bowman, Senior SEO Manager and SEO Evangelist at Yahoo
* Jeff Bonforte, Vice President for Social Search
The downsizing is an attempt to prevent the slide of Yahoo’s revenues and the ever-increasing operating expenses. This will also help the portal to pump up its stock value, much more that Microsoft is bent on buying out the entire company.
Microsoft offered $44.6B in cash and stocks at $31/share premium. The Yahoo executive board quickly rejected the offer stating the Microsoft undervalued the company. The Redmond giant is set to up the offer anytime soon.
Meanwhile, Google is worried about this development and is also up in arms to let Yahoo stay independent.