Yahoo preparing layoffs, could affect thousands: report

SAN FRANCISCO Mon Mar 5, 2012 12:15pm EST

Yahoo Inc. offices, housing its Search Marketing Group, are pictured in Burbank, California, October 14, 2010. REUTERS/Fred Prouser

Yahoo Inc. offices, housing its Search Marketing Group, are pictured in Burbank, California, October 14, 2010.

Credit: Reuters/Fred Prouser

Related Topics

SAN FRANCISCO (Reuters) - Yahoo Inc's new chief executive is preparing a significant restructuring of the Internet company, including layoffs that could cut thousands of employees from its payroll, according to a technology blog.

The moves could be announced as soon as the end of the month and would represent the first major changes under CEO Scott Thompson, the former PayPal president who took the top job at Yahoo in January.

The changes at the struggling Web pioneer, which recently hired the Boston Consulting Group, will focus on its products group, as well as on research, marketing and public relations and businesses that are not core to the company, according to the report on Monday in the blog AllThingsDigital.com, which cited anonymous sources.

"As we have indicated, our leadership is engaged in a process that will generate significant strategic change at Yahoo, but final decisions have not yet been made at this point.

Beyond that, we will not comment," Yahoo said in an emailed statement.

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

The company fired CEO Carol Bartz in September and has been undergoing a "strategic review" since then that could include 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.

(Reporting By Alexei Oreskovic; Editing by Tim Dobbyn)

FILED UNDER:
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (1)
Harry079 wrote:
“Meanwhile, activist hedge fund ThirdPoint has announced plans to install its own slate of directors on Yahoo’s board.”

Score two points for ThirdPoint. They will still end up a point shy of winning.

Mar 05, 2012 12:34pm EST  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.