Yahoo to lay off 2,000 employees to save $375 million annually

  • Thread starter Thread starter ssparikshya
  • Start date Start date
  • Replies Replies: Replies 7
  • Views Views: Views 1,493

ssparikshya

Member
Joined
2 May 2011
Messages
3,303
Reaction score
789
Yahoo Inc said it was laying off 2,000 employees, signaling a broad shakeup of the company.

"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," Chief Executive Officer Scott Thompson on Wednesday. "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."

Yahoo, which ended 2011 with roughly 14,000 employees, said it would save $375 million annually from the cuts. It will incur a pretax cash charge in the second quarter of $125 million to $145 million in connection with the cuts, it said.

The company declined to comment on severance details. Some analysts seemed skeptical about the layoffs, which had been widely expected.

"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."

Yahoo said it would provide more details when it released first-quarter results on April 17.

The layoffs come as Yahoo's revenue declines amid competition from Web rivals Google Inc and Facebook, and as the company fights a proxy battle with hedge fund manager Daniel Loeb.

Loeb, who runs Third Point, is seeking to appoint four new directors to Yahoo's board. Third Point, with a 5.8 per cent stake in Yahoo, is the company's largest shareholder.

TOI
 
very bad move by yahoo. if any indians r there then we as indians should stop using yahoo mail, ad co to stop ad in the site and this will teach them a lesson.:angry
 
Today Yahoo Bangalore office sacked many employees, paid them 4 to 5 months salary as compensation.
 
Back
Top Bottom