Personnel-related “efficiencies” can be good or bad, depending on one’s perspective. Companies want to save money, of course, and their shareholders also appreciate savings. But employees like to keep their jobs. So let’s take a look at what sort of effect the Microsoft-Yahoo deal may have.
On Microsoft’s side of things, not much is supposed to change. Steve Ballmer wrote in an all-hands email that Todd Bishop obtained, “Given the huge opportunities in search and online advertising, we plan to redeploy most if not all affected employees into new high-priority functions.”
And given that Microsoft’s stock climbed a little bit yesterday (opening at 23.73 and closing at 23.80), it looks like investors are okay with the news.
It’s with Yahoo that the situation gets dicey. According to Dan Frommer, Carol Bartz said something like, “Many Yahoo search employees will be asked to take jobs at Microsoft. There will also be search employees who we’ll ask to help on display side of business. And then, unfortunately, there will be some redundancies, so that’s the third bucket.”
Yahoo’s stock opened at 16.00 and closed at 15.14 yesterday.
Yahoo’s search employees have already been extended an (informal) offer of employment, though. After Jason Calacanis asked on Twitter what would happen “to all the amazing people working on search technology at Yahoo,” Evan Williams replied, “They could come work for us!”
