The Yahoo! Layoffs Ripple Effect

Battered by slow revenue growth and the popularity of social networking Web sites, Yahoo! Inc. is poised to lay off hundreds of workers, according to published reports.

Is this the sign of the Bubble 2.0?

In general, I have always been an avid user of Yahoo and will always be as long as they are what they are and will continue to be that way, with more improvement on their systems of course.

I prefer their news and finance sections, small business tools and email system, and the search tools. I actually find the Yahoo Search to be better for “me” than Google. That’s just my personal preference.

As for the Bubble 2.0, I think we are almost there, and soon, you will see the ripple effect for the Yahoo planned layoffs affecting other net companies soon. Like the Bubble 1.0, I think we have already exhausted our current net revenue stream, the ad based revenue model, and those who solely depend on ad revenue model, may initially feel the effect.

There are just too many social networking sites and many other community sites that depend on ad revenue stream alone and have no other revenue model, which I am just not sure how they will survive in years to come.

However, I am not trying to be snobby, but what we are currently developing, Gatepedia, may save the day. It may be the savior for most net companies, but that can only be tested once it is launched.

So, will the Yahoo! layoffs ripple effect reach other net companies, I am sure it will. In the next few months or so, you may see many other net companies doing the same thing, layoffs in order to cut costs and boost profit.

The Bubble 2.0 is coming, it has already touched down, on Yahoo!, and this time, it will be huge than the first one.