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You are assuming that other costs apart from salaries are negligible and that firing 80% of the staff will have negligible effect on revenue. They are pretty b

by Kurtz79 10y ago

You are assuming that other costs apart from salaries are negligible and that firing 80% of the staff will have negligible effect on revenue. They are pretty big assumptions to make.

x0x0 10y ago
First assumption, other costs are negligible: no, I'm not. Every dollar spent on salary is a dollar that doesn't go to profit. Second assumption: letting 80% of staff go won't hurt. For that, I simply have to describe what I've heard from friends / coworkers / scuttlebutt about working at yahoo. But there are a lot of eng doing maybe a couple hours of work per day. from https://finance.yahoo.com/quote/YHOO/financials?p=YHOO https://finance.yahoo.com/quote/YHOO/financials?p=YHOO under opex it looks like there's plenty of fat to cut.
- bduerst 10y ago
  By that logic, businesses would never employ people because it's a cost that doesn't go to profit. And the fat on that OPEX you linked is the writeoff from the Tumblr purchase.
  - x0x0 10y ago
    For companies where employees add little/no value (yahoo!), then yes.