Yahoo to lay off 15% of staff, close five offices, explore non-strategic asset sales

“Yahoo Inc Chief Executive Marissa Mayer is set to reveal cost-cutting plans that include slashing 15 percent of the company’s workforce, or roughly 1,600 jobs, and closing several business units, the Wall Street Journal reported on Monday,” Reuters reports. “The plans are expected to be announced after Yahoo’s fourth-quarter results on Tuesday, the Journal reported, citing people familiar with the matter. It did not specify which business units might be closed.”

 
“Activist investors have pressed Yahoo to sell its core business rather than spin it off, even though a sale would likely incur more taxes.

Yahoo CEO Marissa Mayer (photo by Brigitte Lacombe)
Yahoo CEO Marissa Mayer (photo by Brigitte Lacombe)
It is unclear whether the plan Mayer is expected to announce would satisfy their demands, but cutting costs could make Yahoo more attractive to buyers,” Reuters reports. “Verizon has said it is interested in acquiring Yahoo if it were up for sale. Other potential buyers would include media and private equity firms, analysts said.”

 
“Yahoo had about 11,000 employees as of June 30, according to its website, down from a Dec. 31, 2014 total of about 12,500 full-time employees and what it called fixed term contractors,” Reuters reports. “Yahoo’s shares fell 1.2 percent to $29.14 in afternoon trading on Monday. As of Friday’s close, the stock had lost about a third of its value over the year.”

 
Read more in the full article here.

 

MacDailyNews Take: Good luck to those affected and may an ignominious end for Yahoo be averted.

 
SEE ALSO:
Yahoo investors running out of patience with CEO Marissa Mayer – January 4, 2016
Hedge fund manager blasts Marissa Mayer for equipping employees with 22,000 iPhones – January 4, 2016
Yahoo board to weigh future of company, Marissa Mayer, source says – December 2, 2015
Yahoo or Microsoft can terminate search deal anytime on or after October 1st – April 21, 2015
Microsoft loses exclusivity in Yahoo search deal shake up – April 17, 2015
Yahoo gains further US search share; Google falls below 75% for first time – February 3, 2015
Microsoft, Yahoo vie to become Apple Safari’s default search option – November 26, 2014
Firefox dumps Google for default U.S. search, switches to Yahoo/Bing – November 20, 2014
Yahoo’s Marissa Mayer was right to ban working from home, right? – August 12, 2014
Yahoo CEO Marissa Mayer wants to save Google a billion dollars – April 18, 2014
Yahoo’s strategy: Rebuild search, take share, win iOS from Google – April 17, 2014

13 Comments

  1. I’m not sure if I’d miss them entirely. They ripped off Dashboard with Yahoo Widgets, and they turned that into Yahoo Smart TV, which seems like it still has some of Dashboard’s aesthetics, not to mention that Samsung uses the Yahoo TV platform on their sets. They kind of stole from Apple with that so they aren’t all that innocent. The only thing that they did right was have a sexy CEO, but other than that, they are Apple Roadkill.

  2. Don’t you love tech companies that hire incompetents, but can boast “diversity” that ultimately costs billions of dollars?

    Mayer is the face of this BS today. Is Tim Cook far behind Mayer with his BS diversity?

    1. DUDE,

      get a grip, she’s a 42, 43, 44, year old mother of two, or three.

      Man!

      She would make a great CEO of Apple. Yahoo was a dying company to start with. She needed a much more diversified workforce. One the things she may have heard having such is ‘Let’s change the name”, “We really do need video”, etc. With a much more diversified workforce she could have touched the world, incorporating every culture of the world, but she would never hear that surrounded by a group of white guys from the same set of ivy league schools.

      The worst thing a company can do is hire only the student with high GPAs, ask microsoft, or Sun.

  3. Web ads are a low profit margin dead-end business. Google knows this hence it’s massively expensive and futile search for other lines of income. RIP yahoo but at least they didn’t turn to falsified accounts to stay alive unlike their main competitor.

    1. I think she is plenty smart enough, I’m guessing a poor judge of talent (management, not technical), and probably isn’t skilled at organizational psychology. Running a Hitech company that needs to push the boundaries or whats possible each and every day, that’s a tough job for anyone.

      The baking cookies comment is woeful. I’m guessing she’s already accomplished more than you have and will in your pitiful life.

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