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Deep Job Cuts in Store for Yahoo: All Things Digital

The company’s new CEO Scott Thompson is going to massively restructure the joint

The Dow Jones blog All Things Digital, which is known to have the very best Yahoo sources, said Monday that the company's new CEO Scott Thompson is going to massively restructure the joint, slashing thousands from the payroll in search of growth.

Thompson has hired the Boston Consulting Group to help figure out how to make Yahoo, well, less of a yahoo.

The blog thinks Yahoo's large products organization could be decimated along with PR, marketing, research, marginal businesses, weaker regional efforts and, it suggests, its army of software contractors. It says it was told, "It is going to be deep."

Whole businesses could go unless they can show substantial savings or a clear path to greater growth in revenues, replaced by more promising new ones like, maybe, broadening Thompson's threat to sue the bejesus out of Facebook if it didn't license Yahoo's patents.

Thompson also seems to have put the brakes on selling off Yahoo's sweet multibillion-dollar Asia assets.

Naturally All Things Digital expects executive turnover and reported over the weekend that the head of Yahoo Labs as well as the head of strategy Prabhavar Raghavan, anticipating a blood bath in his department, is jumping to an unknown job at Google, replaced by CTO Ash Munshi.

The outlines of the changes could be announced by the end of the month.

Yahoo has something like 14,100 people.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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