Well Mr Market has liked Yahoo’s decision to fire 1,500 workers. The shares are trading up by about 5% in after market.
The purge outlined Tuesday represents a 10 percent reduction in Yahoo’s payroll of about 15,000 employees. It’s the second time in nine months that Yahoo has resorted to mass layoffs in what so far has been an ineffectual effort to rebound from a financial funk that has left its stock price near a 5 1/2-year low.
Things got worse in the third quarter as Yahoo earned $54.3 million, or 4 cents per share. That was a plunge of 64 percent from $151.3 million, or 11 cents per share, at the same time last year.
Remember, Microsoft were prepared to pay up to $35 a share under the original deal. Yahoo now trades at $12.