Yahoo.com Hires CFO; Plan to Lay off’s 1,000 People
As we disucssed last week Yahoo.com confirmed today that it will in fact lay off a portion of its workforce, but instead of being several hundred people, it will lay off approximately 1,000 workers, representing a 7 percent reduction in its 14,300-employee work force
Yahoo shares dropped $2.13, or more than 10 percent, in extended trading Tuesday after finishing the regular session at $20.81, up 3 cents. The company’s market value has plunged more than 50 percent since the end of 2005, wiping out $35 billion in shareholder wealth.
In other news annouced by the company tuesday, Yahoo and AT&T will share revenue generated through online advertising. Previously, AT&T had paid Yahoo a portion of the fees collected from subscribers to their cobranded Internet service. Analysts had estimated that arrangement generated about $250 million in annual revenue for Yahoo.
To ease the pain of the transition, Yahoo will receive an upfront payment of $300 million to $400 million from AT&T.
Yahoo announced it hired former VeriSign Inc. executive Aristotle “Ari” Balogh as its new chief technology officer, filling a void created with the resignation of Farzad Nazem last June. Balogh, 43, held the same job at VeriSign.
http://www.msnbc.msn.com/id/22903035
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