Synopsis:Yahoo is in the midst of turmoil because of hostility from a major
shareholder and a legal dispute with Facebook. It is planning to lay
off about 2,000 employees in order to cut costs.
New York, April 4 (SharewellNewswire.com) - There is more
turmoil at Yahoo (NASDAQ : YHOO) that has just changed its CEO and is
facing hostility from a major shareholder. It is also grappling with a
legal dispute with Facebook over technology patents. In the midst of all
its troubles, the Internet company is planning to announce a massive
round of layoffs, which could be about 2,000. An announcement to this
effect is expected on Wednesday.
Yahoo is finding it difficult to keep pace with its rivals, Google
(NASDAQ: GOOG) and Facebook. Last year, Facebook overtook Yahoo as the
largest online display advertising carrier in the US. In order to tackle
the complex situation, Yahoo has recently made a series of management
overhauls and appointed PayPal chief executive, Scott Thompson, as chief
executive in January after sacking Carol Bartz.
Yahoo has also been negotiating for a possible sale of assets including
its share in the Chinese Internet company, Alibaba, but all the efforts
went in vain. It received a severe jolt from one of its major
shareholders, Third Point, that is campaigning to oust Yahoo’s
management to revive the company.
It is also grappling with Facebook in a legal dispute over technology
patents. Yahoo sued Facebook last month accusing it of violating its
patents. This week, Facebook counter sued Yahoo, accusing it of
violating patents that cover areas covering display-advertising, content
personalization and photo sharing that were responsible for about 80
percent of Yahoo’s revenue last year.
Resource Link - Yahoo (YHOO) Plans Slashing 2,000 Jobs in Latest Shake Up