Yahoo! Expected to Announce Layoffs Later This Week

The economic crisis we’re seeing at the moment has had an effect on every industry including technology. As the days pass with stocks dropping further, one of the companies making the most headlines with its financial turmoil is Yahoo !

Already this year, the company has laid off staff (1,000 people way back at the beginning of the year) and fought off a long and aggressive take-over bid from Microsoft. At the moment, in attempt to crawl out of the hole it’s in, Yahoo ! is in the middle of penning an advertising deal with search giant Google.

Following HP’s cuts of 25,000 people and eBay giving 10 percent of its workforce pink slips, the San Jose Mercury News says Yahoo ! will announce job cuts of at least 1,000 people, similar to what the company let go in Q1. Reports say the cuts could be made public as soon as tomorrow.

According to Mercury News, while the company cut employee numbers in January, by June the head count somehow ended up back where it started before the cuts, which sort of makes us think that if the company wants to make substantial savings, it’s going to have to re-cut the original thousand and then carry on with further reductions.

The rumors follow Yahoo !’s decision last month to hire a consultancy firm to help cut costs and make the organization more efficient.

Read the full story on Mercury News.