Skip to main content

Yahoo to reduce its workforce by 15% in 2016

By

Yahoo logoImage copyrightGetty Images

15% of Yahoo's workforce will be cut off soon as the company pursues an "aggressive strategic plan" to return to profitability.
This job cuts will bring down the number of its employees to about 9,000 by the end of 2016.
The announcement came as Yahoo reported a $4.3bn (£3bn) loss for the year.
In a statement, chief executive Marissa Mayer said: "This is a strong plan calling for bold shifts in products and in resources."
She added that it would "dramatically brighten our future and improve our competitiveness, and attractiveness to users, advertisers, and partners."
The head-count reduction is the latest part of Ms Mayer's attempt to turn around the troubled internet company, which is struggling to compete against the likes of Facebook and Google.
Mayer's pix

Cost-cutting

In December, the company announced it was reversing a plan to sell its stake in the Chinese e-commerce site Alibaba, and would instead look to spin off its core internet business.
Ms Mayer was forced to change course on the Alibaba sale following pressure from several activist investors.
The focus on cutting costs and raising profits is being seen as the latest sign that the company is becoming more serious about selling its core internet business.
But some analysts are sceptical.
"They can slim down to improve profitability, but they are in an industry that is growing and they're not," said Martin Pyykkonen, managing director at Rosenblatt Securities.
"If the core business was really a valuable asset someone would have come and tried to buy it already," he added.

Under pressure

As well as shedding much of its workforce, Yahoo plans to sell of some of its product lines - such as Yahoo TV and Yahoo Games - so that it can focus on its search business, email and Tumblr blogging site.
It is also closing offices in Dubai, Mexico City, Buenos Aires, Madrid, and Milan.
That should lead to "modest and accelerating growth in 2017 and 2018," the company said.
Yahoo has estimated the cutting back of its product line alone could generate $1bn.
Ms Mayer has been under pressure from investors to step down as chief executive.
"We would like to see a higher stock price, and we think Marissa and her current management team have become a hindrance to that," said Eric Jackson, managing director of SpringOwl.
Yahoo's shares fell 1.4% in after hours trading.
Labels:

Comments

Post a Comment

Comments best made in desktop format...

Popular posts from this blog

Speaker Dogara Flies To Delta In Private Jet To Commission Church Altar

By
Speaker of the House of Representatives, Yakubu Dogara, traveled to Delta State in a private jet earlier today in order to commission an altar in a church in Ubulu-Uku, a town in Aniocha local government area.  Speaker Yakubu Dogara The altar, which was financed by Amaechi Mrakpor, a pastor of "King Jesus and I" who was  newly elected member of the House of Representatives representing Aniocha/Oshimili Federal constituency, will be commissioned tomorrow at 10 a.m.  On arriving in Asaba, Mr. Dogara paid a courtesy call on Governor Ifeanyi Okowa of Delta State and later met with traditional rulers in the state. Rep. Amaechi Mrakpor built a church alter and plans to celebrate her birthday with Dogara When a correspondent of SaharaReporters reached the speaker, he confirmed that he was in Delta State, explaining that he was in Asaba on his way to Ubulu-Uku to commission a project. Asked why he did not travel on one of the planes in the presidential fleet, the speaker di
Post a Comment
Read more

"Hon Adeyemi Alli" Best Candidate For Mushin Federal House of Rep (Constituency 1)

By
It is basically undeniable that the best brains and most successful politicians and leaders are those whom have successfully graduated from the grass root of their locality and constituency into State or Federal Governance.‎ Aremo Adeyemi Alli who started his political carrer since his 20s as the General secretary of SDP far back as 1990 (during the Babangida era) is a big testimony to this fact. He had his elementary education at ojuwoye public primary school and proceeded to Arch Bishop Aggey Memorial Secondary School, Mushin for his post primary education. Hon. Alli attended Nigeria College of Administration Badagry for his tertiary education. Few years later he became an Associate Member of Chartered Institute of Administration ACIA. In his quest for more knowledge, the pioneer Executive chairman of Odi Olowo Ojuwoye LCDA proceeded to Olabisi Onabajo University, Ago Iwoye for his post Graduate Diploma Public Administration. Hon. Yemi Alli also has a masters in busi
2 comments
Read more

Goodluck Jonathan Spotted Inside First Bank In Abuja For BVN (Photo)

By
The former President walked into the Gwarimpa branch of First Bank in Abuja to process his BVN. Trust Nigerians, they rushed to take pictures with him.......
Post a Comment
Read more