This is the sixth in a series of lay offs at Yahoo. The company is losing revenue to Google and Facebook and must lighten the load to recover core priorities and remain profitable. Lost share of advertising has caused a profit decline which they hope to turn around with fewer employees and a new CEO. Good Luck Yahoo. We love you.
Yahoo has some of the most popular web sites in the world but it’s cutting 2,000 jobs as it struggles to focus on smaller numbers of core priorities. Yahoo claims the new Yahoo will be smaller, bolder and more profitable. The layoffs are about 14% of full time workers. It will be the largest cut in years. It’s more than the 1,500 employees that were cut in 2008 at the beginning of the recession. Officials say that with 700 million users the company is still showing profit but revenue has declined after losing a share of online advertising to Google and Facebook.
New Yahoo CEO Scott Thomas said he intended to make major changes in the company after former CEO Carol Bartz was fired in January for failing to turn business around, he added, we are moving aggressively to get back to our core purpose of putting users and advertisers first.
Some Industry Blogs have hinted that these new lay offs may be the first of broader cuts to come. It seems likely that cuts will hit Yahoo’s staff in Silicon Valley, where at least a third of employees are located.
According to the news, Yahoo expects to save $375 million a year by letting these employees go, while paying out charges of $125 million to $145 million for severance and other expenses. The present job cuts are the sixth round in four years under three different CEOs.
Yahoo says it’s important to take these steps in order to serve the public and remain profitable and better equipped to move ahead in the years ahead. Analysts agree it’s the best move for Yahoo to recover from the slump.
Online sources report that employees are making no comments and security personnel are patrolling the parking lots as reporters are gathered outside Yahoo headquarters.