Wednesday, April 4, 2012

Yahoo slashes 14% of its workforce

Market Day reports: In a long-anticipated move, struggling Internet giant Yahoo said today that it would be cutting 2,000 jobs, or about 14%, of its workforce.

The move is part of a major restructuring of the company, Yahoo said in a statement. The cuts announced today represent 14 percent of the 14,100 workers employed by Yahoo, which is based in Sunnyvale, Calif.

"Today, the company will begin the process of informing employees about these changes. As part of that effort, approximately 2,000 people will be notified of job elimination or phased transition," the statement said.

The company declined to comment on severance details.

"Today's actions are an important next step toward a bold, new Yahoo! — smaller, nimbler, more profitable and better equipped to innovate as fast as our customers and our industry require. We are intensifying our efforts on our core businesses and redeploying resources to our most urgent priorities. Our goal is to get back to our core purpose — putting our users and advertisers first — and we are moving aggressively to achieve that goal," said Scott Thompson, CEO of Yahoo.

Some analysts seemed skeptical about the layoffs. "You can't cut your way to revenue growth," said Colin Gillis of BGC Partners. "What people want to see out of Yahoo is they want to see a plan and provision for revenue growth."

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