The global recession is affecting all of use, not least of all the search giant Yahoo. Yahoo, still chasing Google in the bid to be the biggest search engine online, is to make 700 redundancies in a bid to cut costs. However, the redundancies are said by Yahoo to cost somewhere in the region of $30 million and $34 million in severance pay.
The 700 redundancies represent around 5% of the firm’s workforce and were announced by Yahoo in April this year.
The redundancies have been the first large scale redundancies by the new Yahoo CEO Carol Bartz, however they are the third round of redundancies at Yahoo in the last year and a half.
Yahoo does claim however that will benefit from picking up somewhere in the region of $8 million in lost stock options from the employees who are being made redundant, so should lose somewhere in the region of $22 million in total.