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Valleywag is reporting from its sources that Yahoo is planning to cut 3,500 jobs. Most of the employees in the list will be from sales and finance department. The date to layoff employees is December 10 which is only 4 days after the annual holiday party.

The company is already not doing much and with this decision things might not change. Yahoo’s shares went up when Ballmer said that the company still makes some sense. So the possibility of Microsoft buying Yahoo is still there but any deal soon is unlikely.

Anyway this is what their source disclosed:

I work in the finance org at Yahoo and have learned that the layoff date is Dec. 10. Finance will be cutting 50% of the workforce, engineering 10%, and sales and the rest of G&A [general & administrative] 25%. The company sent an invitation today for the annual holiday party on December 6 (four days before the biggest downsizing in the company’s history ~3,500 jobs). The holiday party is held at the San Mateo Convention center with a Las Vegas gambling theme. [It will] cost millions of dollars. Where is the fiscal responsibility?

Also the source has confirmed that the company will be cutting the laying-off packages. It would be very pathetic, if this is implemented because such an act doesn’t suite a company like that. Company’s CFO Blake Jorgensen has argued the move. The source further told Valleywag:

I guess Jerry Yang feels that maybe he would have better luck betting the whole company on a Las Vegas table than he has at running it. As you reported, our CFO is cutting the severance packages (I guess so he can fund the multimillion dollar holiday party). Employees are outraged and are planning to boycott the party. Maybe they should have surveyed the employees to see if they wanted to attend one party or get better benefits in their layoff packages. My finance peers should get their resumes updated as 50% of us will be leaving.

Things at Yahoo aren’t going well for the past few months. A number of executives and employees have already left the company in the recent times and more are leaving e.g. the head of finance for Yahoo’s media group, Rojeh Avanesian, who left the company after serving for seven and a half years. Lets hope things would get better at Yahoo.