Sadly, it may not be a very merry Christmas for the Yahoo! team. After dodging weeks of rumors, it's been confirmed that the company is eliminating a significant chunk of its staff, along with about a half dozen products. 

Yahoo! Senior software developer Zach Graves stirred the pot when he tweeted the following earlier this month:



When questioned about the tweet, Graves said: “I simply made an observation that a handful of my co-workers had made the decision, on their own, to leave the company. In no way did it imply that Yahoo! had started layoffs.” Yahoo! declined to comment. 

The tweet and Graves's defense were -- unsurprisingly -- followed by layoffs. The most notable change thus far is the axing of the entire Delicious team, though the popular social bookmarking service seems to be jumping ship willingly: 

"We are not shutting down Delicious," reads a post on the Delicious blog. "While we have determined that there is not a strategic fit at Yahoo, we believe there is [an] ideal home for Delicious outside of the company where it can be resourced to the level where it can be competitive."

The Sun Goes Down for Several Products

And it gets juicer. Former Yahoo employee Andy Baio tweeted a Yahoo! product team meeting slide that shows which products Yahoo! is either closing or merging: 

Learning Opportunities


On the doomed list with Delicious: Altavista, MyBlogLog, Yahoo! Bookmarks, Yahoo! Picks.

Word on e-street is Yahoo! Product Manager Blake Irving has threatened to fire whomever leaked the slide.

Practically forced to say something this time, Yahoo! made the following official announcement:

Part of our organizational streamlining involves cutting our investment in underperforming or off-strategy products to put better focus on our core strengths and fund new innovation in the next year and beyond.

We continuously evaluate and prioritize our portfolio of products and services, and do plan to shut down some products in the coming months such as Yahoo! Buzz, our Traffic APIs, and others. We will communicate specific plans when appropriate.