Oct 27, 2008 : Yahoo! to Build Nebraska Operations

📅 October 27, 2008 - Yahoo! (http://www.yahoo.com) announced on Friday that it will invest at least $100 million in setting up a new operations in Nebraska, which will include a new data center and a new service center, according to The Associated Press. The planned operations will create at least 100 new jobs.


The announcement has left many confused, seeing as how just days before the company announced it would slash at least 10 percent of its workforce, or 1,500 employees, citing a 64 percent decrease in its third-quarter profit as a result of the recent economic downturn.

Earlier this year, the company applied for state tax breaks offered in Nebraska to help jumpstart its operations in La Vista.

Nebraska Governor Dave Heinemanhe said Yahoo!'s customer service center will be located in west Omaha, likely at the First National Bank business park near Boys Town.

The financial incentives require the company to invest at least $10 million and create at least 100 jobs over the next seven years. In exchange, Yahoo! will receive sales tax refunds on capital purchases, as well as some property and payroll tax breaks.

Kevin Timmons, Yahoo!'s vice president of operations, responded to criticisms of creating new jobs while terminating 1,500 existing workers, asserting the company's continued need to grow its infrastructure.

He added that the Omaha and La Vista operations are "mission-critical facilities," and that the jobs required to run the new data center could not be outsourced.

The company revealed it is preparing for a greater downturn going into 2009 by reducing its annual expenses of $3.9 billion by $400 million.

In addition to cutting the 1,500 employees during the next two months, Yahoo! said it may also shutdown some US offices and outsource more jobs to lower-paid contractors in other countries.