In the cut-throat industry of technology, businesses can either sink or swim - and in the case of Yahoo! and its quest to keep its head above water, employees look set to be pulled under.
Thousands of jobs could be placed in severe jeopardy, as Yahoo! attempts to salvage its reputation and profits by cutting down on spending in order to increase its investments, say sources at AllThingsD.
Whilst it is unknown what new CEO Scott Thompson has up his sleeve, speculations about the cost savings are dominating many an online forum as the future of Yahoo! hangs in the balance.
A report by Kara Swisher claimed that Thompson was looking to sack employees in marketing, research, public relations and "marginal businesses". According to a blog posted on ZDNet, it appears as though Thompson's game plan is to reduce expenditure and place those savings into businesses with potential growth. The only issue is that it's less of a plan, and more of an idea - however, it remains to see what will come about following the scheduled layoffs.
It's alleged that in Yahoo!'s fourth conference call, Thompson hinted at a possible change - yet further details have yet to be released.
Thompson stated: "We will focus on generating real, sustainable growth and value creation. I feel great about all that, but I’m also very clear that we have a lot of work to do. It’s still early, and I don’t intend to lay out any detailed strategy until I fully assess our direction…We’ll prioritize the most important things, move aggressively, and we’ll move fast. We have to get great, innovative products that matter into the market, absorb feedback quickly from our customers and grab those products constantly."