Telecom Lead America: Yahoo has decided to cut 2,000
jobs. The job elimination or phased transition will help the digital media
company to realize approximately $375 million of annualized savings.
Indications are that Yahoo’s Indian operations will be affected due to the
strategic decision.
Yahoo said the company will begin the process of
informing employees about these changes. As part of that effort, approximately
2,000 people will be notified of job elimination or phased transition. Yahoo
did not share region specific details.
Yahoo currently expects to recognize the majority of an
estimated $125 to $145 million pretax cash charge relating to employee
severance in its second quarter financial results. Yahoo may incur additional
charges in connection with this action.
Yahoo said these steps are to reshape the company for the
future. Through its restructuring efforts, Yahoo intends to grow by responding
quickly to customer needs and competing more effectively in areas where it can
win.
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. We are intensifying
our efforts on our core businesses and redeploying resources to our most urgent
priorities. 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,” said
Scott Thompson, CEO of Yahoo.
Yahoo has nearly 700 million users and thousands of
advertisers.
Yahoo focuses more on profitability and growth. Through
these new efforts, the company will be disciplined in its investments and
radically simplify how it builds, launches and maintains many of its properties
and products.
Yahoo! has identified key parts of the business – a
select group of core businesses, the platforms that support those core
businesses, and the data that drives deep personalization for users and ROI for
advertisers – where the company will intensify efforts and redeploy resources
globally, all focused on increasing shareholder value.
