“Today’s actions are an important next step towards a strengthened new Yahoo, smaller, leaner, more profitable and better equipped to innovate as fast as our customers and our industry require,” said CEO Scott Thompson, who took office last January. “Our goal is to return to our central purpose, putting our users and advertisers first, and we are acting aggressively to achieve that goal,” he added.
The affected workers received or will receive during the course of the day the proper notice. Some of them will stay in their posts for a while, reported AP news agency. The company declined to comment on the details of compensation payments.
The Californian firm estimated a $ 375 million savings per year after the cuts. This is the sixth mass layoffs in the last four years under three different CEO, these layoffs come as a result of the decline of Yahoo’s revenues before rivals like Google Inc. and Facebook, and also while the company suffers a power struggle with the fund manager Daniel Loeb.
Loeb, who runs Third Point, wants to appoint four new directors on the Yahoo board. Third Point, with a share of 5.8% in Yahoo, is the main shareholder.