Internet search company Yahoo Inc. announced Tuesday that it would slash 5% of its workforce, as it reported a first-quarter profit that fell sharply from a year earlier but still managed to beat Wall Street's forecasts.
We often forget that a CEO's primary job is to deliver the best possible Return on Investment (ROI) for the shareholders.
Sure, we like it when they talk about social responsibility, efforts to green their workplace, hiring older workers, and promoting certain social causes, but, at the end of the day, it all comes down to shareholder value. In this realm, nice guys do finish last. Lest we forget that industry mammoth Google laid off workers (not just contractors or hourly workers) recently.
As much as some may try to blame the economy, this practice is nothing new, it just happens to be especially harsh right now given the high rate of national unemployment.
I do foresee a huge paradigm shift among employees though. Over the last 10 years workers have seen benefits erode, work hours increase, company loyalty evaporate, and pay levels decline. I do believe that the recession of 2008 and 2009 will motivate workers to be more entrepreneurial, increasingly open to working for smaller boutique firms, and pursuing freelance work.
Does Yahoo really suck? No more than any other mega corporation that has shareholders, owners, investors, and other stakeholders to answer to.
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