RUMOR: YAHOO TO LAY OFF 2,500

A rumor is making the rounds that managers at Yahoo! have been told to start deciding which staff need to go. The reason? Yahoo!’s upper management is set to cut 20% of its staff, or around 2,500 people.

Although not official yet, TechCrunch has been told this is happening from two independent sources. Yahoo! has used the common response of not commenting on rumor or speculation. If it’s going to happen it won’t be long before former Yahoo! staff start talking about it, though.

The rumor comes a few days after Google decided to give all its staff a 10% pay raise and $1,000 to spend over the holidays. Clearly they have been doing a lot better than Yahoo! for quite a while now.

We really hope this rumor isn’t true for the sake of the staff who will lose their jobs. But at the same time there’s a lot of talented people at the company who should have no problem finding alternative positions. Maybe they can use Yahoo! Hotjobs to find another employer. [Geek]