In the wake of announcing that it will lay off about 1,500 of its workers earlier this week, Web pioneer Yahoo  co-founder and chief executive Jerry Yang has expressed optimism that the Sunnyvale, California-based company can be transformed by the continuing strength of its online advertising business under his leadership even as the economic downturn continues to worsen, according to a Wednesday interview. Yang Is The "Right Person" To Lead During Present Hardships Yang has faced criticism from a seemingly endless number of critics on numerous fronts since moving into the chief executive role previously held by Terry Semel last summer, however the head of the 14-year-old company said Wednesday that he was the best person to be guiding Yahoo during its present difficulties that have seen stock prices drop to their lowest level in more than five years. "In this uncertain environment, I think I am absolutely the right person," Yang said in a telephone interview with Kara Swisher of the Dow Jones-owned All Things Digital Web site. "Times like this require a leader who really understands this company and its customers, and I think I do," Yang added. On Tuesday Yahoo released third quarter financial results (.PDF file) that showed a slight 1 percent rise in revenue and a sizable 64 percent earnings tumble, and said that over the next several months it would lay off 10 percent of its workers. Cuts Made For Right Reasons Yang said that the cuts Yahoo had decided to make were well thought out. "We also want to make sure that we are cutting to be more effective and not cutting for cutting’s sake," Yang said in the interview. Despite lowing its revenue estimates for 2008 in its Tuesday financial filing, Yang said that he is happy with  some aspects of Yahoo's present position. "I like a lot of things we have going for us in the current situation. We have no debt. We have a strong cash position," Yang said Wednesday. The economic downturn has placed all companies in the same uncharted waters of uncertainty, which Yang said could act as a sort of great equalizer in that no one firm can predict when the sea of financial turmoil might change for the better. "We don’t know how bad it is going to get, and neither does anyone," Yang said. "We have to be able to move fast when it turns," he added. Yahoo's reduced share prices were not the primary trouble spot for Yang, who noted that the company continues to have a strong cash position. "Right now our stock is very cheap, but we think having our cash position is more important," Yang said. Yahoo Chief Executive Jerry Yang Sees Glimpses of Strength Despite Layoffs, Economy Likening the present economic tumult to that of the tech 2001 technology bubble, Yang saw unique circumstances that Yahoo can navigate through smart leadership. "Like everyone else, we are pretty much forced to formulate our views in an unprecedented set of circumstances because things are changing so quickly and the world looks a lot different than just three or four weeks ago," Yang said. "It is a little like 2001, when online usage continued to go up, but revenue drivers declined," he added. While declining to venture a prediction as to when the worst might be over, Yang noted that "we’re assuming a lengthy period of weakness" for the economy. Yahoo and Internet search leader Google were awaiting a decision from the United States Justice Department over whether a proposed search advertising partnership between the two would violate antitrust laws. The proposed agreement, which could extend as long as a decade should all optional renewals take place, would allow Google to provide ads alongside search results from Yahoo. Yahoo is on track to change into what Yang said was a new form. "My dream is to transform Yahoo as a platform and product company and I think we are on the way to really doing that," Yang said. Related Links :
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