Confirmed: Yahoo Lays off 2,000 Employees
This morning, Yahoo confirmed the layoff of 2,000 employees in an effort to make the company “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,” Scott Thompson, CEO of Yahoo, said in a statement issued by the company. “Unfortunately, reaching that goal requires the tough decision to eliminate positions. We deeply value our people and all they’ve contributed to Yahoo.”
Through the layoffs, Yahoo expects to realize about $375 million of annual savings. Yahoo also plans to take a $125 to $145 million pretax cash charge relating to employee severance in its second quarter financial results, which it expects to report on April 17.
The layoffs, which had been reported by AllThingsD on Tuesday, may not be the last. AllThingsD reports that Wednedsday’s round is “just the tip of the proverbial iceberg” and more are to come. The company had 14,000 full-time employees before Wednesday’s announcement.
Reps from Yahoo could not be reached for comment on that report.
Yahoo’s waning influence has been the subject of hand-wringing for some time. The company fired CEO Carol Bartz last September and has since replaced her with Thompson, a former PayPal executive. Jerry Yang, Yahoo’s co-founder, also resigned from company’s board of directors that month. Since that time, Yahoo has sued Facebook over patents and Facebook has countersued.
Yahoo’s stock was down about 0.5% at press time on the news.
Image courtesy of Flickr, Eric Hayes
Source: Mashable, Yahoo News