Beat down Yahoo. That's apparently Starboard's agenda to force a reorganization at the media company to get the business on track. As a result, a forced restructuring could see the Sunnyvale, California company experience layoffs -- about 10% of its workforce, according to one report. The shuttering of Yahoo Screen could be the beginning to the domino effect.
It turns out the activist hedge fund delivered another letter to Yahoo’s board of directors, calling for "significant changes." Making no mention of Yahoo’s advertising clients or consumers traversing Yahoo’s network of cites, Starboard believes shareholders have “lost confidence in the ability of current management and the board to create value for shareholders” and waiting another year “while the existing leadership continues to destroy value is not acceptable.”
Citing sources, the Business Insider reports that a team is working on laying off about 1,000 employees across its media business, including search advertising and marketing, European operations, and the technology platform group.
Some layoffs are likely tied to Yahoo Screen. Earlier this week news broke that Yahoo shuttered its Screen services business in what some call a sign of struggling times. CEO
Marissa Mayer's bet big that Yahoo’s video streaming could draw a new generation of users to its site. The division launched in September 2013, and was an on-demand streaming service for TV shows, movies, Webisodes and other new media.
Yahoo warned in October that it would narrow its focus in the coming months. Now the company says that the videos available on Screen would be transition to other parts of Yahoo -- specifically its digital magazines.