Yahoo! to cut its workforce by 14% to save $375 million

Posted on Apr 5 2012 - 4:58am by Julius

Online search engine Yahoo said this week that it will be laying off 14 percent of its workforce, or 2,000 people, as part of its restructuring that will end its struggle for survival in the business.

“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,” said Yahoo! Chief Executive Officer Scott Thompson in a statement.  “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.”

The company, which ended year 2011 with around 14,000 employees, said that it will save $375 million per year from the layoff. Although the website still has one of the biggest audiences online, it has been on a decline as it faces rivals Google Inc. and Facebook.

The workers affected by the cut were notified yesterday, and according to the company, some of the staff will stay for a longer time to finish a number of projects.

This marks Yahoo! Inc.’s sixth mass employee layoff in the last four years under three different heads. The second biggest layoff was in 2008, where the company laid off 1,500 workers as the company tried to cope with the Great Recession.

A number of analysts said that the company failed to fully explain how the layoffs will help them to improve revenue across its businesses, which include websites for news, sports, email and photo sharing.


via: Ubergizmo

Leave A Response