Yahoo: Microsoft Is Distracting Our Employees
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Though it shouldn't be a surprise that when one of the biggest tech companies in the world makes a hostile bid on another that the employees of each organization may be left a little unsettled, it is rare that such a sentiment makes it into a SEC filing. Yet this is exactly what Yahoo stated in its Feb. 27 annual report: "The review and consideration of the Microsoft proposal (and any alternate proposals that may be made by other parties) have been, and may continue to be, a significant distraction for our management and employees and have required, and may continue to require, the expenditure of significant time and resources by us," the filing reads. Furthermore, Yahoo feels that Microsoft's Jan. 31 unsolicited bid has posed a recruiting and retention threat, as well, as nervous employees might expedite their plans to work elsewhere, and be difficult to replace in the office climate. "Microsoft's unsolicited acquisition proposal has also created uncertainty for our employees and this uncertainty may adversely affect our ability to retain key employees and to hire new talent." Of course, not all argue that it is Microsoft that is causing itchy feet in the Yahoo work force. Prior to the Microsoft bid, Yahoo shuffled a lot of executive chairs before posting record-low fourth-quarter earnings; shortly after, it laid off 1,000 workers. Since rejecting the Microsoft bid, Yahoo has been sued by seven shareholders, and more are likely to come. Perhaps it's just easier to blame the Microsoft bid for workers' eyes on the door. |
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Comments (5)
It always occurs that when a company is about to take over another company then the employees of the company taken over is get disturbed. They start thinking that what will be the cooperation of the new employer with them and a lot many other matters which educes the efficiency of the employer.
Posted by Francois | March 3, 2008 5:26 AM
It is funny that hooYa blames the merger attempt more than its own layoff of 1100+ "worker bees" in regards to knocking the wind out of their remaining employees. I am not sure if the attempt by MS has more effect than having the company you work for day, night, and even weekends fire your co-workers who work day, night, and even weekends side by side with you while the management is not demonstrating improvement.
Posted by FSDA | March 5, 2008 10:32 AM
I'm not in favor of Microsoft purchase Yahoo for various reasons but seriously now, what is the Yahoo management smoking? This looks like a feeble attempt to marinade a scapegoat before their next financial reports. Yahoo was already in midst of some major changes long before the Microsoft offer and part of the change included a large number of layoffs. The count already exceeded 1000 shortly after the bid announcement plus the plans were also documented in the last quarter's report.
So which one hits employees morale and productivity harder? Official plans from the parent company that's already dealing with revenue decline and rapidly growing competition announcing major layoffs coming up real soon or a bid by the biggest software vendor that pretty consistently posts strong revenue growth? I'm leaning towards the former. Yahoo hit the break-glass panel triggering the alarm long before Microsoft's bid went public. This filing really looks like Yahoo's execs are grasping at straws, prepping Microsoft to be the scapegoat for Yahoo's poor performance. I'd love to see how they continue to play this charade in the next financial report.
Posted by Joe | March 8, 2008 3:17 PM
I think yahoo's dingos found Cheech and Chong's old roach and are blowing smoke! The only thing that has the remaining yahoo retainers quaking is the layoffs and treatment they receive from their company. I don't think MS has anything much to do with the attitudes, or feelings.
Posted by Robert 2 | March 27, 2008 2:14 AM
Yahoo shareholders are angry at Yahoo's performance, but how is Microsoft going to change that? Microsoft stock performance has been just as bad, so I dont know what they expect to gain. Also Microsoft will destroy Yahoo so whatever bad performance they had is going to get a lot worse, I hope after they make their bed they lie in it.
Posted by uhhh | April 6, 2008 4:12 PM