The announcement won’t come as a shock to many who have been following the rumors since last month over at All Things Digital. Nevertheless, it’s definitely unfortunate timing for Yahoo employees with Christmas just a couple of weeks away. Cost cutting at the company seems unavoidable as it seeks to improve revenue and growth -- revenue had edged up by less than 2 percent to $4.8 billion through the first nine months of the year, according to Associated Press, while rival Google has seen 23 percent revenue growth in the same time frame to nearly $21 billion.
In the last few years the company has also missed the opportunity to buy Facebook and headed off a $44.6 billion takeover offer from Microsoft at $33 per share (compared to today’s value of roughly $16.70). Since then Yahoo has inked a deal with Microsoft to use Bing as its search technology provider and focus on its core website properties and its display-advertising business, but it hasn’t shown any significant signs of a turnaround.