Yahoo Lays Off, Restructures
As earlier reports predicted, Yahoo just announced massive layoffs. On Wednesday alone, the beset portal said some 2,000 employees, or 14% of the company, could expect pink slips -- and that’s likely just the beginning.
“Today’s actions are an important next step toward a bold, new Yahoo,” the company said in a statement. “Smaller, nimbler, more profitable and better equipped to innovate as fast as our customers and our industry require.”
“While Yahoo has had periodic layoffs over the years, this one is its most significant in its history and will also result in another large-scale restructuring of the management organization,” writes AllThingsD. “More cuts are also likely to follow in the months ahead, due to the reshaping of Yahoo.”
“We’ll have to wait to see what remains of Yahoo after the dust settles -- but it’s looking like not much,” reasons Search Engine Land. “Oh, the humanity.”
“Yahoo says that it will save $375 million upon completion of the layoffs,” TechCrunch reports. “The company currently expects $125 to $145 million in a pretax cash charge relating to employee severance packages.”
“The Internet company said the job cuts would not be across the board, and that it would double down in key areas,” reports The New York Times.
Yet, “Yahoo was surprisingly coy about its plans,” according to CNet. “The company said that it has identified areas where it believes it can grow its business and increase return on investment for advertisers. However, it didn't say how it plans to achieve that goal nor when investors -- we'll see what they make of the layoffs -- should expect to see some improvement.”
Vague or not, Macquarie analyst Ben Schachter sees the layoffs as a start in determining a new direction for the company. Regarding Yahoo’s recently appointed CEO he tells Reuters: “Scott Thompson is not there to tweak the business … He saw something in the assets to make him think there was potential."