Yahoo Preps For Future, May Lay Off R&D Unit

Dry River BedAmong the thousands of workers Yahoo will reportedly lay off at the end of the month are those at Yahoo Research, writes Sarah Lacy at PandoDaily. With staff working at hubs around the country, this is Yahoo’s central R&D organization. In the words of its own web page, it’s “responsible for big inventions – our goals are nothing short of inventing the future of the Internet and creating the next generation of businesses for Yahoo! ”

As Lacy sniffs:

Yeah, why would you want those guys around when you can just get revenues by suing competitors?

A source says Yahoo is firing at least the New York team of researchers and possibly the entire division. We haven’t been able to get solid confirmation on how wide reaching this is, but the New York team will definitely be out of a job by the end of the month, our source says. (Kara Swisher presaged some of this when she wrote about the head of Yahoo Labs heading to Google a few weeks ago.)

That head was Prabhakar Raghavan, who also oversaw Yahoo’s strategy. What he’ll be doing at Google isn’t clear. (The company also recently lost SVP of Product Management Bill Shaughnessy.)

As for the rest of the team, Google and Facebook are already on recruiting missions. Lacy says Mark Zuckerberg is personally trying to get them to land at Facebook.

Lately Yahoo’s been busy suing Facebook over patents covering, among other things, advertising and online user interaction. It’s also been shopping around its advertising platform in an effort to trim costs. None of this sounds like the doings of a particularly focused company.

Comments

  1. BY RMSx32767 says:

    It appears the internet future they are inventing will perhaps not include Yahoo!

  2. BY John says:

    They will probably send the jobs to India. That’s “free” enterprise – free for whom and to do what? BTW: A big problem we have with Pakistan, India’s contentious next door neighbor, is not only harboring terrorists for our struggle in Afghanistan, but now we have our technology jobs in India which adds another layer of complexity to our Middle East problems. I have contracted for two Fortune 500 companies with India off shore facilities that openly admitted “we don’t have the back ground checks over there we have here.”

    • BY AG says:

      Background checks who cares? Lets see how much money we can save by off-shoring and keep the shareholders happy, BTW. I joined the company because they offered me stock option. I have the stocks, but, no job.

  3. BY Rich says:

    *sigh* When will CEOs stop listening to the bean counters by recommending that they dump their ‘expensive’ employees…who in this case just happen to be their most creative and innovative employees who could figure out how to get the company out of its financial slump and make it some money.

    Yet another corporation giving itself a pre-frontal lobotomy. The dopes.

  4. BY alan hawkins says:

    Yahoo fell asleep at the wheel years ago. When they were struggling, Microsoft with its deep pockets offered to buy them – which would have allowed them to better compete with Google. But Jerryy Yang’s ego prevented it. And as they say, the rest is history.

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