Yahoo! Inc. (NASDAQ:YHOO) is facing a tough time in the market. Many experts think that Yahoo! Inc. (NASDAQ:YHOO)’s core business has no value and the company is nothing without Alibaba stake hype. But Yahoo! Inc. (NASDAQ:YHOO)’s CEO Marissa Mayer has not taken any radical steps since her take over to get the company back in business. We have seen massive layoffs, complete changing of products strategies, acquisitions and mergers from major tech companies in the US to get along with the fast moving wheel of the market, but nothing is changing at Yahoo! Inc. (NASDAQ:YHOO). On the other hand, company’s costs are elevating. An article on The Street reported that in three years, Yahoo! Inc. (NASDAQ:YHOO)’s general costs surged by $500 million. Yahoo! Inc. (NASDAQ:YHOO)’s core business still generates $4.4 billion, but end profit is going to be just around $190 million, which is alarming.
The source mentioned that Yahoo! Inc. (NASDAQ:YHOO)’s earnings have tumbled 12% in three years and profits have also dropped 30%. Yahoo will have to take extraordinary steps to fine tune its performance and internal costs.
The article compared Yahoo! Inc. (NASDAQ:YHOO) with Facebook and said that Facebook is a goliath and business giant as compared to Yahoo, but it has only 9,000 employees whereas Yahoo! Inc. (NASDAQ:YHOO) has 12,000 employees which are permanent and then there are thousands of temporary contract jobs.
The source said that instead of cutting jobs, Yahoo! Inc. (NASDAQ:YHOO)’s CEO is hiring more people and took 2,000 more employees on board since her first day as the boss. Yahoo! Inc. (NASDAQ:YHOO) will have to take some steps to cut its costs otherwise the already unsatisfied investors and shareholders will leave the company.
David E. Shaw’s D.E. Shaw & Co., L.P. reported owning about 16.19 million shares in Yahoo! Inc. (NASDAQ:YHOO) by June 30.
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