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Yahoo CEO needs to outline his vision after layoffs

Sharon Gaudin | April 5, 2012
As Yahoo laid off about 2,000 employees Wednesday, industry watchers were asking when its CEO will lay out his vision for the struggling company's future.

Regardless of whether Yahoo is put up for sale or about to be reorganized, the company needs a clear plan and its executives need to explain it, the analysts said. A taste of this could come April 17 when Yahoo announces its first-quarter financial results.

"I think that Yahoo is going to have to put forward a credible plan to make the company a player again," said Dan Olds, an analyst with The Gabriel Consulting Group. "There isn't anyone out there who will want to buy the company as it currently sits - - at least not at anywhere near a price that will make Yahoo investors happy to sell. Plus, if they come up with a solid plan that works, the value of the company will rise on its own."

Enderle is divided on whether Yahoo will be sold or rebuilt, and said it's not good for the industry, nor for Yahoo employees, to be left wondering.

"I think this is all an indicator that this isn't over," Enderle said. "I think the cuts need to be a lot deeper than they are. You want to make sure this is the first and last layoff you have to do. You don't want to have to keep cutting and cutting."

 

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