Yahoo to Lay off 2,000 as CEO Scott Thompson Targets Turnaround
NEW YORK - Yahoo said Wednesday it will cut about 2,000 jobs, or about 14 percent of its staff of about 14,000, to realize approximately $375 million in annualized savings.
The layoffs have been expected as new management looks to improve the Internet firm's financials.
"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," said recently named CEO Scott Thompson. "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."
A spokeswoman said the 2,000 layoffs is a global number but wouldn't detail what divisions, functions and locations would be affected. The cuts are believed to be across several departments, including marketing. One source said Thompson emphasized that Yahoo's content, media-communications and data operations were among his team's core focus areas.
Yahoo said it expects to recognize the majority of an estimated $125 million to $145 million pretax cash charge relating to employee severance in its second-quarter financials.
The company cited its nearly 700 million users and thousands of advertisers as a solid foundation for its business.
"Through its restructuring efforts, Yahoo intends to grow by responding more quickly to customer needs and competing more effectively in areas where it can win," it said. "With a clear focus on profitability and growth, the company will be disciplined in its investments and radically simplify how it builds, launches and maintains many of its properties and products."