Apart from the recent layoff announcements made by Jerry Yang, a Microsoft purchase would probably lead to even more layoffs. This will be very devastating for a lot of people, but could actually refuel the Web 2.0 movement(noticed I didn’t say bubble?).
As a result of the layoffs a lot of engineers will probably polish their shelved plans for web domination. Hopefully they’ll get on their feet quickly and start developing cool apps that could become successful companies.
Or they can just join startups, bringing with them tons of experience to help them mature. A great example is Chris Szeto former Director of Product Management for Yahoo! Messenger who just took a gig as Senior Director of Products at Meebo.
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