Yahoo! Next is an incubation ground for future Yahoo! technologies currently in their beta testing phase, similar to Google Labs. It contains forums for Yahoo! users to give feedback to assist in the development of these future Yahoo! technologies.
In early 2006, Yahoo! offered users the chance to beta test a new version of the Yahoo! homepage. However, it currently only supports Internet Explorer and Mozilla Firefox. Users of other browsers, such as Opera, have criticized Yahoo! for this move. Yahoo! says they intend to support additional browsers in the future.
On August 27, 2007, Yahoo! released a new version of Yahoo! Mail. It added Yahoo! Messenger integration (which included Windows Live Messenger due to the networks' federation) and free text messages (not necessarily free to the receiver) to mobile phones in the U.S., Canada, India, and the Philippines.
On January 29, 2008, Yahoo! announced that the company was laying off 1,000 employees, as the company had suffered severely in its inability to effectively compete with industry search leaderGoogle. The cuts represented 7 percent of the company's workforce of 14,300. 
In February 2008, Yahoo! acquired Cambridge, Massachusetts-based Maven Networks, a supplier of internet video players and video advertising tools, for approximately $160 million.
Yahoo! announced on November 17, 2008, that Yang would be stepping down as CEO.
On December 10, 2008, Yahoo! began laying off 1,520 employees around the world as the company managed its way through the global economic downturn.