Yahoo! made the downsizing move today by cutting 2,000 workers. That’s about 14% of its workforce and the company hopes to save $375M per year from this cutback. Competition for advertising dollars from Google and Facebook took away some public confidence in Yahoo! and led to the departure of co-founder Jerry Yang on Jan of this year. New CEO Scott Thompson is now focusing on building a nimbler company and hopes to reverse the declining revenue. Thompson formerly headed PayPal and helped PayPal to more than double its revenue, and he is being put to test right now.Yahoo!’s share price has been range bound mostly between $15 and $16 for the past six months and analysts on the street have a wide array of ratings on it, from Outperform and $22 price target at RBC and Sell and $14 price target at Goldman Sachs.In my humble opinion, this is a perception game for Yahoo!. It grew with the generation who are now in their 30’s and 40’s, but it never picked up people in their 20’s and younger. Ask any teenager in any American town, I bet they don’t associate Yahoo! with words like cool or hip. So consequently, Yahoo! is losing a young generation whose spending power goes up everyday. Scott Thompson had a great record of boosting user base when he was at PayPal, so let’s watch if he can not only boost the user traffic, but also diversify where the clicks came from. I absolutely welcome your comments if you disagree with me, you can tweet me @juliasun_onair or leave comments for our show. I’m Julia Sun for the Financial News Network and I’ll see you in a bit.