Yahoo to Lay Off 15 % of Workforce, Revamp Firm
Yahoo on Tuesday introduced it might contemplate a reverse spin-off and minimize about 15 % of its workforce as a part of a turnaround plan to revive its struggling Web enterprise.
The tech firm additionally posted quarterly outcomes broadly in keeping with analysts’ expectations. Yahoo reported adjusted fourth-quarter earnings of thirteen cents per share on $1.27 billion in income. Analysts anticipated Yahoo to report earnings of about thirteen cents per share on $1.19 billion in income, based on a consensus estimate from Thomson Reuters.
Along with the layoffs, Yahoo plans to shut 5 workplaces and discover promoting some non-strategic belongings. The corporate expects annual financial savings of about $four hundred million from the strikes.
Yahoo additionally goals to make its platforms extra engaging to advertisers and enhance gross sales and profitability.
"Immediately, we’re saying a strategic plan that we strongly consider will allow us to speed up Yahoo’s transformation," stated Marissa Mayer, CEO of Yahoo. "This can be a robust plan calling for daring shifts in merchandise and in assets."
Rumors have swirled about Yahoo’s plans because it introduced in December it will not full the deliberate spin-off of its stake in Chinese language e-commerce big Alibaba. Yahoo has reportedly thought-about promoting its core Web enterprise, and the corporate has confronted strain from activist investor Starboard Worth.