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Yahoo’s Chopping Spree Isn’t Done Yet

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In the aftermath of Tuesday’s layoffs, Yahoo (NSDQ: YHOO) is either merging, folding in, or outright cutting a number of its products. A slide making its way around the web today shows that Yahoo is planning to cut services including MyBlogLog, AltaVista, and Yahoo Buzz. Yahoo is confirming that it is “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.”

Under CEO Carol Bartz, Yahoo has cut a long list of its properties, including GeoCities, Jumpcut and Farechase, and sold or outsourced others, including HotJobs and Yahoo Personals. Earlier this year, however, Bartz gave the strong impression that those cutbacks were done with, noting in May, for instance, that Yahoo was done divesting businesses.

Since then, though, Bartz has hired several new senior managers, including Ross Levinsohn as the company’s Americas head and Blake Irving as chief product officer, and this latest streamlining appears to be part of their strategy.

According to the slide, which was presented by both men at an all-hands product meeting, Yahoo Picks, AltaVista, Alltheweb, Yahoo Bookmarks, Delicious, Yahoo Buzz and MyBlogLog are all being closed down. Foxytunes, Yahoo Events, Yahoo People Search and Fire Eagle are being “merged,” while Yahoo Deals, Yahoo Avatars, Yahoo Alerts, Yahoo Widgets, Yahoo Greetings, Yahoo Babel Fish, Yahoo Calendar, Yahoo Address Book, Yahoo Notepad, and Yahoo Message Boards will be made “features” of other Yahoo products.

Of those, Yahoo’s statement to the press only confirms that Yahoo Buzz, a social news service which the company launched in February 2008, and the company’s traffic APIs, are closing. As for MyBlogLog, a social networking service built around blogs, Yahoo had warned a year ago that its future was under discussion.

Probably the most high-profile product on the chopping block is Delicious, the popular social bookmarking service that Yahoo had acquired five years ago. Yahoo gave the site a refresh in spring 2009, but traffic has been falling for much of the last year.

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