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Yahoo Photos was closed on September 20, 2007, in favor of Flickr.

On October 16, 2007, Yahoo announced that it would discontinue Yahoo 360°, including bug repairs; the company explained that in 2008 it would instead establish a "universal profile" similar to the Yahoo Mash experimental system.

On April 4, 2012, Yahoo announced a cut of 2,000 jobs or about 14 percent of its 14,100 workers.

The cut was expected to save around $375 million annually after the layoffs were completed at end of 2012.

However, Filo and Yang insist they mainly selected the name because they liked the slang definition of a "yahoo" (used by college students in David Filo's native Louisiana in the late 1980s and early 1990s to refer to an unsophisticated, rural Southerner): "rude, unsophisticated, uncouth." This meaning derives from the Yahoo race of fictional beings from Gulliver's Travels. Like many search engines and web directories, Yahoo added a web portal.