Scott Thompson Unveils the All-New Yahoo While Quicken Loans Grabs Its Staff
Yahoo! (NASDAQ: YHOO) has been struggling for some time now - that much is without question. The former internet giant has seen companies like Google (NASDAQ: GOOG), Amazon (NASDAQ: AMZN) and Facebook think faster and attract consumers at an incredible rate, leaving YHOO to feed on crumbs.
Days after unveiling some pretty brutal job cuts (2,000 people, to be exact), YHOO CEO Scott Thompson has been addressing employees to discuss how the company will be reshaped going forward.
Meanwhile, it is not all bad news for those that lost their jobs with Yahoo, as the Detroit-based Quicken Loans family of companies is launching an effort to lure some of those laid-off workers to the Motor City.
It has launched a website, www.ValleytoDetroit.com, for those 2,000 former Yahoo employees to submit resumes.
"We know that there is a great deal of talent inside of Yahoo — especially in marketing and Web development — and we're encouraging those who have been impacted by job cuts to consider Detroit as the next stop in their career," Detroit Venture Partners CEO and managing partner Josh Linkner said in a statement.
It is a bold move by Quicken Loans, who has said that it will begin the preliminary round of interviews immediately, and fly out final candidates to Detroit. Quicken Loans chairman Dan Gilbert has already convinced Twitter to open an office in Downtown Detroit, and he is seeking to create a small technology corridor on Woodward Avenue in the city.
Back at Yahoo, Thompson said that the new Yahoo will be organized into three core divisions, effective May 1. These will include a consumer arm, focusing on media content; a regions division, dealing with advertisers; and a technology division handling the company's infrastructure and platforms.
Pivotal Research said on Tuesday that, while the consequences of Yahoo's recent restructuring announcement won't be fleshed out for some time – additional details will certainly be brought to light on the company's upcoming earnings call – it certainly contributes to an improved financial profile for the near-term. Unfortunately for the company, it appears that erosion of the display business continues, and we think it likely that the organizational tumult will cause the company to grow at a slower pace in the near term than it might otherwise have done.
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