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Yahoo (the Google of the 90's) Announces 1,000 Layoffs...

Everybody loves Google.  The perks, the options, and yes, the backrubs...

So apply today.  If you can't join 'em, feel free to buy some Google stock at $548 per share, because in theYahoo_recession near term, it's probably going up.

Just know that the business cycle is... well, a cycle.  Companies built on 50% growth models ultimately slow down....

Need some proof?  Consider the case of Yahoo, which still is probably a very cool place to work.  It was the Google of the 90's...  And today, it announced plans to layoff 1,000 employees, which is about 7% of it's workforce. 

From the New York Times:

"After announcing a sharp drop in fourth-quarter profits Tuesday, Yahoo issued a disappointing outlook for this year, suggesting that investors would have to wait until 2009 for a turnaround.

Yahoo also said that as part of its plan to revive its fortunes, it would cut 1,000 jobs by mid-February to reduce costs and narrow its focus to its most important businesses.

The company, however, said it planned to invest aggressively in some areas, like advertising technology and selected portions of its Internet portal, as it tries to capture a larger share of online ad dollars. Since some laid-off employees could apply for new jobs at Yahoo, the net effect on the work force, which recently grew to 14,300, was not clear.

Jerry Yang, the chief executive, warned investors of “head winds” this year. Yahoo’s projections for revenue growth and profitability in 2008 were either at the low end of analysts’ expectations or below them."

It's sad when a cool brand ends up looking like a normal business.  Just serves as a reminder that the coolest brands, business models and cultures are susceptible to competition, pressure on margins, and making money...


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