Yahoo plans layoffs

Yahoo’s new chief executive has decided that the only way forward for the troubled outfit is to axe shedloads of staff.

Apparently the axeman is sharpening his axe and thousands of employees will be clearing out their desks and collecting their P45s soon.

CEO Scott Thompson, the former PayPal president who took the top job at Yahoo in January recently hired the Boston Consulting Group to come up with ideas to sort the business out.

His idea appears to be to focus on its products group, as well as on research, marketing and public relations and businesses that are not core to the company.

According, which cited anonymous sources the only way to do that is with significant staff cuts.

Yahoo has not confirmed this, other than to say that its glorious new leadership will generate significant strategic change at Yahoo, but final decisions have not yet been made at this point.

Yahoo’s revenue slid by more than a fifth last year, had 14,100 employees at the end of 2011.

It fired CEO Carol Bartz in September and has been undergoing a “strategic review” since then. But a large amount of that time has been spent by the board working out how the company can see off any major buyouts.

Since Thompson appeared there has been a move to actually do a few things including spinning of some of its Asian assets and accepting a minority investment in the company. Meanwhile, activist hedge fund ThirdPoint has announced plans to install its own slate of directors on Yahoo’s board.