Posted by Sanket Patel
April 05, 2012
Before some days, rumors are spread about Yahoo’s employees. On Wednesday, the company has released a statement in which they stated that 14 % of it total workforce or around 2,000 employees are laid off.
“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. 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,” said Yahoo’s CEO Scott Thompson. “Unfortunately, reaching that goal requires the tough decision to eliminate positions. We deeply value our people and all they’ve contributed to Yahoo!”
There are most of people, who eliminate their position while some go through undefined “phased transition,” named by Yahoo CEO Scott Thompson. Once the dust settles, it is expected by Yahoo to save approximate $375 million. In its second quarter financial results, approximate $125 to $145 million pretax cash charge, which is related to employee severance, will be showed up by mostly in the dust.
Recently, significant changes related to staff reductions has been made by Yahoo that the layoffs account for 14 percent of Yahoo’s workforce and mark the sixth time in four years, according to the BBC News.
Firstly, AllThingsD confirmed this action in front of people. Thompson said the “tough decision” was necessary to make Yahoo “smaller, nimbler, more profitable and better equipped to innovate as fast as our customers and our industry require.”
At present, about 14,000 employees are working with Yahoo and it is not confirmed that where the axe will fall. But, according to Kara Swisher of AllThingsD speculates that layoffs will be across the board and may hit several areas in particular:
“The layoffs, which will touch all units of the company, are expected to hit hardest in the product division, which is headed by Blake Irving . . .
But the fate of two key parts of the soon-to-be-blown-apart unit — Yahoo’s advertising technology businesses, Right Media and APT, and its search business — is still being contemplated . . . Also set to be hard hit are Yahoo’s local businesses, as well as its marketing and research divisions . . .”
Furthermore, it is also guessed by Swisher that right now, Yahoo search Chief Shashi Seth “is likely to run consumer products,” which will house whatever stays of Yahoo’s search business.
In January, Chief executive of Yahoo, Thompson had given a signal about some significant changes and didn’t give any kind of details about it. But, on 03rd April’s statement, he said that company has recognized “a select group of core businesses” within Yahoo that it will center on without denoting those areas.
In order to convey more personalized content and improved ROI for advertisers, he also repeated his aim. According to the AllThingsD report, plans could be laid out by Thompson, who has hired the Boston Consulting Group, for a company-wide reorganization next week.
Posted by bakulsengal Bakul Sengal
April 25, 2022