Yahoo! axes! 2,000! workers! Yahoo has said that it is laying off about 2,000 employees as it struggles to regain its web crown. The firm said those at risk would be told of their "job elimination or phased transition" as part of its restructuring, which will save the company $375m every year. "Today's actions are an important next step toward a bold, …
Rather than cutting itself to death, why doesn't Yahoo try to increase its value, say for example by not being such a crucial part of the spammer infrastructure? In recent changes Yahoo has done a lot to help the spammers. Doesn't that seem like a crazy maneuver for a company that bases much of its value on its email system?
Hey, Yahoo. If you can't deal with the spammers--and you obviously can't--then why don't you give US better anti-spam tools so we can help you deal with them. You don't have to let us pull the triggers, just let us help you in the aiming, eh?
Well there is a bit more to it than just salary :
* Companies typically pay money on top of the salary (social security, pension funds, taxes, charges etc.)
* 2000 staff will have offices, need facilities, computers, [cell] phones etc. Trust me to say that closing down a bay area office building reduces costs dramatically ...
Agreed with Patorian. I forget where I've heard this, and I can't find anything to back it up concretely, but the rule of thumb is that the cost to a company in terms of the abovementioned as well as HR costs, insurance, and benefits (Don't forget the States' insane health care costs) is triple the base salary. That's why some companies are eager to hire contractors instead; they only pay the base salary, and it's the contractor's duty to tackle the expenses.
So using that offhand guess, we've got an average salary more in the 62K range, which makes a lot more sense.
Apart from the other comments also don't forget taxes. I don't know how it works in other countries, but over here (Holland) the sheer cost of taxes alone is murderous.
If you have some staff on the payroll and you want to give them a bonus of E 500,- then prepare to whip out E 1000,- in total because our government also wants a (big) piece of that pie.
As others have said, there's more cost to hiring an employee than base salary, but I don't see that applying to severance pay. What's more appalling to me is:
$125,000,000 / 2000 = $62,500 average severance pay
And that's just the estimated minimum. Considering that's more than the average yearly household income in the US, they're giving their employees more than a year to find a new job.
Of course now that I think about it, it's probably better to use the median severance pay of $0 as the $125 million is being split between two or three execs.
Hey that's my line. And, btw, it is spelled yawho?
They talk of recovery, but all I see are the last gasping steps of a once-great organisation stumbling into the road in front of oncoming traffic.
This move will save them about 375M per year. In other words it will save them about 200M. Can't see y! making a whole year.
Much to my shame, I admit using Yahoo for a quick view of the days headlines and it's absolutely repulsive. The articles lack spell checking, have never seen an editor of any sort and the comments section seems to have been taken over by Neo-Nazis all hellbent on out-trolling each other.
I need a new news website. -.-
They do this every year.
Existing people get to work 6 months of the year, the other 6 being used for figuring out who their boss is, how to get at half-finished important projects hidden in a fired person's shut-down computer account, and generally reinventing the wheel, whose original inventors have been shown the door.
Within months they start hiring again.
Then everyone spends time teaching the newbies stuff the others knew in their sleep.
Meanwhile tech stuff breaks and nobody can fix it, and emails are solved by directing them to the bit bucket.
They never seem to close the sections that do important work like sending out compulsory lessons on how to SIT at a desk.
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