Dissident Yahoo Investor: Company Layoffs Came Without Detailed Vision
Hedge fund Third Point says that "while this action was unfortunately necessary...this round of cuts occurred before CEO Scott Thompson has articulated his strategic plan for the company."
NEW YORK - Dissident investor Third Point on Wednesday continued its war of words with Yahoo following the online company's announcement of about 2,000 layoffs.
The cuts "represent the company’s fifth significant headcount reduction in as many years," the hedge fund said. "While this action was unfortunately necessary and widely expected, Third Point, Yahoo’s largest outside shareholder, is disappointed that this round of cuts occurred before CEO Scott Thompson has articulated his strategic plan for the company."
It added: "As he approaches his 100th day as CEO, shareholders and remaining employees have heard few such specifics. Many of Yahoo’s senior-level employees and investors have apparently seen enough and heard too little, and have independently staged an exodus, weighing on the company’s share price."
Third Point concluded by saying it is looking forward to hearing from Thompson and the company's board "on what they have in mind."
In announcing the layoffs, Yahoo said it would focus on core areas, but didn't provide many specifics. It said that more details would be outlined during its next quarterly earnings conference call. Third Point recently proposed four Yahoo board members, including former NBCUniversal CEO Jeff Zucker.