Yahoo CEO tries to reassure workers after layoffs

Apr 06, 2012
In this Nov. 15, 2010 file photo, PayPal president Scott Thompson fields a question at the Web 2.0 Summit in San Francisco. Thompson has reassured the struggling Internet company's employees about his turnaround strategy during meetings next week. (AP Photo/Paul Sakuma, File)

(AP) -- Yahoo CEO Scott Thompson plans to tell the struggling Internet company's employees more about his turnaround strategy next week.

Thompson also sought to boost sagging employee morale in a staff memo Thursday. It came a day after Yahoo Inc. began laying off 2,000 workers in the biggest purge in the company's 17-year history.

The 14 percent cut in Yahoo's workforce marks Thompson's most dramatic move since he was hired three months ago. Yahoo Inc., which is based in Sunnyvale, Calif., lured him away from eBay's PayPal payment service.

"I have seen big turnarounds before, and this company has the foundation, the spirit, the backbone and the creativity to get it done," Thompson wrote.

Although he didn't provide specifics, Thompson hinted that he plans to streamline Yahoo's management team to enable the company to keep pace with Internet search leader . and leader Facebook Inc. in the race to sell online advertising.

"There's a lot to do, and that's why I can't stress enough that we all need to focus on getting stuff done," Thompson wrote. "Getting stuff done is short hand for eliminating bureaucracy and barriers so we can all innovate as fast as our customers and the industry require."

After meeting next week with employees, Thompson has promised to share more details about his plans with Wall Street on April 17, when the company is scheduled to release its first-quarter earnings report.

As has been the case through most of the past four years, the results are expected to show a decline in Yahoo's revenue even as advertising continues shifting to the Internet.

One of Yahoo's largest shareholders, activist investor Daniel Loeb, criticized Thompson for handing out layoff notices before spelling out his vision for the company.

In Thursday's memo, Thompson said he wanted to be "fair and respectful" to the laid-off employees before discussing the future.

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User comments : 13

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Lurker2358
not rated yet Apr 06, 2012
"Trust me, we'll only cut your job if absolutely necessary!"
Vendicar_Decarian
not rated yet Apr 06, 2012
I used to Yahoo for news. But it has gotten increasingly stupid.
kaasinees
0 / 5 (21) Apr 06, 2012
Here is an idea, start boycotting all the companies that enable advertising.
Musashi
not rated yet Apr 06, 2012
Here is an idea, start boycotting all the companies that enable advertising.


I thought advertising made the Internet free. Personally, I can suffer through it...
kaasinees
0 / 5 (21) Apr 06, 2012
Here is an idea, start boycotting all the companies that enable advertising.


I thought advertising made the Internet free. Personally, I can suffer through it...

No, you have to pay for your internet access.
If you mean the advertising keeps websites free, true to a certain point.
Websites can run perfectly fine on paid subscriptions and donations. And still be free for regular members.
kochevnik
not rated yet Apr 06, 2012
Hmm kill payroll, destroy company knowhow, show short-term boost in profits, strangulate life-blood of company, wallow as a corporate zombie for years while stock plummets, exit with golden parachute.
Vendicar_Decarian
not rated yet Apr 06, 2012
That seems to be the plan.
kaasinees
0 / 5 (21) Apr 06, 2012
Also think about this.
Maybe you and i can suffer through advertising, block advertising etc.
But think about the general population especially the elders that go on the internet.
This is why i dispise TV in general, most of it is propaganda and keeping people stupid. Social conditioning is found everywhere.
MTV used to broadcast music, discovery used to be about discovering. etc. etc. Times changed, TV changed or maybe i just woke up and saw the lies.
We have to stop supporting these companies that screw everyone over, even if we can see through all the deception others cant.
Deathclock
1 / 5 (1) Apr 06, 2012
Here is an idea, start boycotting all the companies that enable advertising.


What? No... that's stupid.

All websites make money somehow, most through advertising... do you really think all these websites are charities and people pay the server costs as a public service for you?

PhysOrg is not a charity, Physorg makes money through all kinds of different ads, including full articles that are little but huge advertisements, and there is nothing wrong with that, they need to make money or they have no reason to keep operating.

Stop being dumb please.
kaasinees
0 / 5 (21) Apr 06, 2012
PhysOrg is not a charity, Physorg makes money through all kinds of different ads


And you think i dont know that? Most articles are about advertising and attracting investors etc.
I really dont care if physorg dissapears, does that make me stupid?

You think advertising is the only way to make money? I go on plenty of websites that are donation or premium driven, it works. If you cant see that maybe you are stupid.
Deathclock
1 / 5 (1) Apr 06, 2012
"If you cant see that maybe you are stupid."

You'd rather be forced to pay for a subscription than to see an ad or two (if you don't know how to block them), and you're calling me stupid?

"Screw this ad based business model, here just charge my Visa for $29.95"

SO SMART KAAS!
kaasinees
0 / 5 (21) Apr 07, 2012
SO SMART KAAS!

Yeah supporting companies that willingly make advantage of weaker minds by loud advertising is so much smarter.

You are so smart mr old software engineer who doesnt even know what linux is.

Anyways i visit regularly websites that are driven on donations and premium memberships, i dont pay a dime on those websites yet i get good content. Too complicated to understand mr?
kaasinees
0 / 5 (21) Apr 07, 2012
ps, i am European i don't do credit cards. apparently i am smarter than an American.

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