Troubled Yahoo, has been forced into laying off a massive 14 percent of its total global workforce. The cuts probably won’t stop there.
The axe will come down on 2,000 people across its many branches, and the company has warned that more may well be yet to come. CEO Scott Thompson is on the warpath to slash unnecessary debts and is shaking the company by the collar in what is usually called restructuring.
Yahoo said that it should save roughly $375 million each year from laying off the employees.
It must be coincidence that, as Yahoo is in financial strife, that it is also at odds with Facebook as it prepares for an IPO, and is looking for a large cash settlement.
Meanwhile, Yahoo’s advertising has been losing out to Zuckerberg and Google.
Bloomberg reports that Thompson faces a struggle against investor Third Point LLC, which already owns 5.8 percent of Yahoo. It is looking to place four of its own nominees, including CEO Daniel Loeb, onto the board which it calls “sorely in need” of restructuring. The big idea, it has been suggested, is a fire sale.
The atmosphere can’t have been rosy at Yahoo over the last couple of years. Although Yahoo still boasts of being the top web portal in the USA, it has been under flak for poor management from former pottymouthed CEO Carol Bartz and founder Jerry Yang, who recently left the building.
The possibility of a deal with China’s Alibaba also fell through.