Yesterday, Yahoo! announced that what was expected to be hundreds of layoffs will be rounded up to more than 1,000 jobs cut. Unfortunately, the writing has been on the wall for some time as several Yahoo! assets were underperforming.
Yahoo Video fell 80 percent while traffic to rival YouTube grew by nine percent. Metacafe grew by 27 percent. Traffic on Yahoo! asset MyBlogLog, a social network for bloggers, has been declining since a poorly communicated move to Yahoo! IDs. Gmail seems to have an edge over Yahoo!
Mail, which is a bit more clunky than it used to be and is largely unusable by Safari (a small, but still viable percentage of accounts).
Not all the news is sour mind you. Yahoo! and AT&T are expanding their alliance. Yahoo! has cornered a big share of the $548 million market for online ad revenues for sports sites, says Forbes. And most people seem to like Flickr. Even their front page news is pretty good, even if you don’t use the search tool. These are just a few of the reasons I suspect people like the Silicon Valley Insider is calling for any ideas that might “help save” Yahoo!
Part of the challenge isn’t technology as much as it is communication, inside and out. Outside, members of various assets call Yahoo! unresponsive. Inside, layoff rumors have been whispered about for some time. Even The New York Times called said the Tuesday conference call droning and jargon filled.
Since the best communication happens from the inside out, it seems to me that how Yahoo! handles its layoffs will largely dictate how long the road of recovery will be. Large-scale layoffs, especially when no one knows which business areas will be hardest hit, can demoralize employees to the point of paralysis.
It’s especially important for Yahoo! to avoid the concept that there is some magical "clean slate" once layoffs are over. Why? As Umesh Ramakrishnan, vice chairman, Corporate Technology Partners, said: "The biggest challenge Yahoo! has is cultural. It's gotten away from the creative company it used to be—that's the difference between it and Google. Yang needs to bring that culture back and bring innovation to the forefront."
I could not agree more. Yahoo! needs to get away from being too myopic and retain some of the color and creativity that seems to escape every time it purchases a company. Instead of telling employees what to do and online members what will be done, invest more time into discovering why the acquisitions were performing so well to begin with, sans the Yahoo! brand.
By almost every account, Yahoo! is not a sinking ship. But it could be, unless someone inside makes a serious push to bring the passion back from the inside out. And that is always much more difficult to do, when almost one in 10 employees won't be there to help.
Yahoo Video fell 80 percent while traffic to rival YouTube grew by nine percent. Metacafe grew by 27 percent. Traffic on Yahoo! asset MyBlogLog, a social network for bloggers, has been declining since a poorly communicated move to Yahoo! IDs. Gmail seems to have an edge over Yahoo!
Mail, which is a bit more clunky than it used to be and is largely unusable by Safari (a small, but still viable percentage of accounts).
Not all the news is sour mind you. Yahoo! and AT&T are expanding their alliance. Yahoo! has cornered a big share of the $548 million market for online ad revenues for sports sites, says Forbes. And most people seem to like Flickr. Even their front page news is pretty good, even if you don’t use the search tool. These are just a few of the reasons I suspect people like the Silicon Valley Insider is calling for any ideas that might “help save” Yahoo!
Part of the challenge isn’t technology as much as it is communication, inside and out. Outside, members of various assets call Yahoo! unresponsive. Inside, layoff rumors have been whispered about for some time. Even The New York Times called said the Tuesday conference call droning and jargon filled.
Since the best communication happens from the inside out, it seems to me that how Yahoo! handles its layoffs will largely dictate how long the road of recovery will be. Large-scale layoffs, especially when no one knows which business areas will be hardest hit, can demoralize employees to the point of paralysis.
It’s especially important for Yahoo! to avoid the concept that there is some magical "clean slate" once layoffs are over. Why? As Umesh Ramakrishnan, vice chairman, Corporate Technology Partners, said: "The biggest challenge Yahoo! has is cultural. It's gotten away from the creative company it used to be—that's the difference between it and Google. Yang needs to bring that culture back and bring innovation to the forefront."
I could not agree more. Yahoo! needs to get away from being too myopic and retain some of the color and creativity that seems to escape every time it purchases a company. Instead of telling employees what to do and online members what will be done, invest more time into discovering why the acquisitions were performing so well to begin with, sans the Yahoo! brand.
By almost every account, Yahoo! is not a sinking ship. But it could be, unless someone inside makes a serious push to bring the passion back from the inside out. And that is always much more difficult to do, when almost one in 10 employees won't be there to help.