Analyst Calls For Layoffs At Yahoo

Analyst Calls For Layoffs At Yahoo

We've argued that Yahoo needs to cut 1,200 of its employees. Bernstein analyst Jeffrey Lindsay argues that the cuts need to go a lot deeper: 20% of the work force, or at least 2,000 employees. Unless Yahoo posts an extraordinary Q4, we suspect that these unpopular murmurings will become a full-fledged howl by early next year.

Major, disciplined layoffs would accomplish four things:

* Improve Yahoo's low profit margins.
* Raise the average strength of Yahoo's management team.
* Serve as a swift kick in the posterior to remaining employees.
* Demonstrate that CEO Jerry Yang can make the tough, unpopular decisions necessary to get this company humming again.

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