BUSINESS
07/02/2008 05:12 am ET | Updated May 25, 2011

Could Yahoo's Talent Exodus Be Good For The Tech Giant?

Here's the thing about the so-called "brain drain" at Yahoo: It could be great for the company.

Over the last few months, Yahoo has lost a slew of big thinkers and master planners. While the tech press is in a tizzy over the exodus -- it is, after all, a juicy story -- the fact is that Yahoo stands to benefit from all the departures.

For one thing, it helps trim costs. Before the Microsoft drama unfolded, Yahoo was expected to announce significant layoffs. When the ax finally came down, analysts were disappointed that the job cuts were so modest. The company announced plans to cut 1000 jobs, or roughly 7 percent of its workforce, while some analysts hoped for cuts of up to 20 percent, to help clean house and tidy up the balance sheet.

We suspect that many of the exiting execs are probably big-salary guys and gals, and if they don't bleed purple, it may be time for them to move on.

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