14 DAY TRIAL // Is Microsoft the shark in the murky waters where Yahoo has ended up? The two companies have been traditional partners, and the interoperability between Yahoo Messenger and Windows Live Messenger, as well as Microsoft's Windows Live affinity for online services such as Flickr, are strong illustrations of the intimate connection between Redmond and Sunnyvale. And on top of it all, rumors of a potential Microsoft acquisition of Yahoo have been circulating in a repetitive pattern, despite the fact that the two giants have consistently denied such a scenario, placing the focus entirely on their existing partnership and its evolution.
Yet with Google increasing its foothold on the search engine market and social networking hotspots, such as MySpace and Facebook, grabbing more and more eyeballs, Yahoo is suffering. The loss in search market share, as well as the overall loss in audience, has resulted in an inherent financial loss. With the latest financial results painting a bleak picture of a company suffering, Yahoo announced that it will lay off an estimated 1,000 of its 14,300 strong workforce. The move is planned for debut this February. Yahoo's profit dropped to $660 million for 2007, down from $751 million in 2006.
By contrast, Microsoft has posted new record results for the past financial quarter, with a revenue of $16.37 billion and an operating income of $6.48 billion. And with a profit roughly 10 times that of Yahoo, the Redmond company is now applying the divide and conquer strategy on its partner. With Yahoo refusing to sell out, Microsoft is now on a mission after its people. The moment could not have been more fertile for the Redmond company, as news of the layoffs provide strong incentives for Yahoo workers to abandon the Sunnyvale company and switch sides.
"I am a member of Microsoft's marketing staffing team. We're seeking world class employees to help us create products that help people and businesses throughout the world realize their full potential. Your name was brought to my attention as someone who may be very knowledgeable in the online business space. I know a lot of people from Yahoo! have been reaching out to us lately because they are nervous about the pending layoffs. I wanted to give you an opportunity to explore Microsoft careers as well. I would love the chance to speak with you confidentially about opportunities. It would give me an opportunity to better understand your experience and to discuss your career path and professional interests," reads an excerpt from an email coming from the Microsoft Global Central Sourcing Team and targeting Yahoo employees, as cited by Silicon Alley Insider.
Microsoft effectively claims that Yahoo employees have been trying to get jobs and to leave Yahoo in light of the layoff threat. But it's not enough for the Redmond company to welcome those that are divorcing from Yahoo. It is also gunning after the remaining employees offering such incentives as medical and dental benefits packages, vacation, employee stock purchase plan, and 401k.
"I found a little bit about you online and I'd appreciate an opportunity to fill in the blanks. You've read this far so you must be at least a bit intrigued by what we may have to offer so I would love to speak with you in more detail. If you are open to having a brief conversation, or know someone who would be, I'd love to hear from you! Otherwise, please kindly let me know so I can make a note not to contact you in the future, or perhaps to reach out at a different email address," it is added in the email.