While Google and Microsoft battle off to win the online war with Yahoo as their winning chip, Yahoo is no less fighting its own internal war too. Whether Microsoft’s bid is a deal or not, Yahoo as announced last month began to cut jobs; up to 1,000 employees. Chief Executive of Yahoo Inc, Jerry Yang is expected to cut the work force by around 7 percent of 14,300 employees as reported end of 2007.

One Yahoo engineer manager commented that the cut-off is strictly performance based and and is spread across all other division instead of cutting off the whole unit operation. Apparently all division heads are asked to look at the redundancies and create their own cut-off list.

Yang however did not plan to quit his CEO position and sell off Yahoo without giving a fight. While the cut-off is no fun to execute, the cut-off plan however if executed well only strengthen Yang’s leadership and gain more respect from inside and outside the company. Yang is definitely working towards keeping Yahoo as a stand-alone company.

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