Yahoo Suffers From Identity Crisis

Yahoo has been delivering web services for the past decade to zillions of people. But somewhere it has caught up with various kinds of bureaucracy and has failed to keep abreast with its competitor Google. So, it is now trying to revamp corporate culture and boost the morale of thousands of its employees. It is planning to downsize and reconstruct its work force. This move will surely reduce some expenses but will not entirely solve all the problems. In fact, insiders feel that the biggest challenge in front of them is to revamp its culture. Yahoo needs to bring back the culture of innovation.

Analyst Imran Khan from JP Morgan said that these cutbacks will go a long way in helping Yahoo reach and maintain its profitability and also help it reinvest in graphical ads, search and partnerships. Some critics believe that such downsizing will definitely affect employee morale and will have a negative impact on productivity.

Just like Google, Yahoo had enjoyed a long phase of growth and innovation during the initial years. Under the able leadership of co-founders Yang and David Filo, it jad launched hits like instant chat, web-based email and web search. In the year 2001, the dot-com bust affected the company and pushe down its stocks from a high of $475 (£239) in January 2000 to a low of $4 in September 2001.

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