Yahoo has announced that it is to close up between Christmas the January this year as part of its ongoing, and apparently increasingly extreme, cost-cutting measures.
Yahoo has been in a fairly sticky monetary situation this year, managing not to turn a loss by firing a significant proportion of its staff. Apparently, the cost-cutting continues this Christmas, with the company to effectively close-up shop over the Christmas break. Strangely enough, its staff hasn’t been given the choice as to whether or not it wants time off… it’s a choice between holiday time or unpaid leave. Seems a little hard, but that’s life.
Word comes via the Wall Street Journal that Yahoo’s current move to cut down on costs over the usually fairly quiet Christmas period isn’t entirely unheard of, and indeed it seems that many other Silicon Valley companies engage in the same practice. The same has been said of AMD, which this Christmas will be closing its chip fabrication operations down for Christmas, an unusual practice to say the least, though it has offloaded some of its fabrication to another party.
Still, while it might not be unusual for other companies, Yahoo isn’t normally one to shut down over Christmas. Naturally the company that’s been assuring everyone it’s not a search engine this year has been downplaying the news, with spokeswoman Dana Langkeek saying that Yahoo’s decision to close “during a traditionally slow week allows employees to recharge, and the company to reduce operating costs for the week.”
Certainly, this is a time of change for Yahoo, but cutting down on expenditure can only go so far. For many, the question is still, “If Yahoo isn’t a search company, then what is it?” Yahoo’s move to rebrand itself as a kind of ultimate homepage offering support for Twitter/Facebook etc. is certainly doing quite well, but we’d have to wonder if it will be enough to keep the company going.