In a sign that Search Engines are not immune to Recession, Wired reports Yahoo Report Could Disappoint, Analysts Say Layoffs Likely:
"…"I expect [the company] to announce close to 1,000 layoffs. I can't tell you where [Yahoo] will cut from, but I can tell you what they're not going to touch: Mail, Instant Messenger, Yahoo Finance, Flickr and Del.icio.us," says Global Equities Research analyst Trip Chowdhry. "I think Yahoo, like eBay, is fatigued. They've got to get rid of the things that aren't working anymore. They're on a long journey, it could be another two to three years of turnaround."
That may not be Yahoo's only piece of bad news. The company is also expected to provide an update on its deal with AT&T, which is supposed to be renegotiated this spring. Under the current agreement, Yahoo receives fees per subscriber for providing premium web-based services to AT&T's broadband subscriber base. It's not clear how the talks are going, but Youssef Squali, an analyst with Jefferies & Co., thinks the company could lose $200 million to $250 million in access fees under a new agreement."
I wrote about possible Yahoo layoffs earlier this month and it seems inevitable now - I guess we'll find out how many employees are actually going to be fired later today - my guess is 800, let's see what's actually announced.
