Yahoo’s fourth-quarter earnings were overshadowed Tuesday by the company’s announcement that it would cut staff as it explores a sale.
The struggling search giant reported adjusted earnings in line with Wall Street’s estimated 13 cents per share and revenue of $1.27 billion, higher than the $1.19 billion that analysts were expecting.
Yahoo has outlined an aggressive cost-cutting strategy that includes reducing its headcount by 15 percent and closing offices in Dubai, Mexico City, Buenos Aires, Milan and Madrid. Those cuts are expected to reduce Yahoo operating expenses by $400 million by the end of the year.
The Sunnyvale, Calif.-based company has also said it will simplify its product slate by shutting down some digital magazines in an effort to consolidate the business and by scrapping some projects including Yahoo Games and the smart TV platform.
Yahoo’s exploration of a sale comes after the company abandoned plans to spinoff its stake in Alibaba late last year.
Yahoo shares closed Tuesday down 1.7 percent to $29.06.
