Latest Yahoo Cuts Are Troubling

May. 3.09 | About: Yahoo! Inc. (YHOO)

(Catching up on posting)

The latest Yahoo (NASDAQ:YHOO) cuts are troubling — Om Malik reports that Yahoo is now cutting heavily at Flickr, including its top development talent.

This reminds me of how CEO Ed Zander closed Motorola’s (MOT) talent-laden software lab near UIUC two years ago. (Ironically, Yahoo created a new office to hire that talent.) Of course, we know how the Zander story ended.

Less than four months ago, I was very upbeat on Carol Bartz. However, now she seems like she believes it’s possible for Yahoo to cut its way to greatness.

If she's not finding a way to effectively protect the company’s greatest asset — its people — then Carol will go down in history with Ed, if not Bob or Alice.