Reports from various sources have confirmed that Yahoo Inc will begin its much anticipated layoff procedure this week that will cut down the companys existing workforce by almost 14%.
This move is a part of CFO Scott Thompsons reform strategies as the Internet Company desperately tries to cut down its operating costs by an estimated $375 million and save its existence in the search world.
There are strong rumors that Yahoo is discussing a renegotiation of its search and advertising deals with Microsoft, and that the company is also engaging in active discussions with Google about the latter taking over Yahoos search business although no comments could be obtained from any of the three companies involved.
As per sources, the lay offs will take place in phases and is expected to begin with job cuts in the product, research and marketing departments which build and maintain the new Yahoo websites and mobile apps. Further job cuts can be expected in other departments like the public relations division and in addition a large number of contract workers who are not on Yahoos official roster may also be impacted by this decision. It is also being said that the companys top executives are seriously discussing selling off the companys various businesses including ad technology org and Yahoo search and more as part of the proceedings.
With only 2.4 billion searches conducted over Yahoo and the companys constantly declining revenue the internet company is possibly looking at getting out of search altogether and focus on media advertising only. But if Yahoo is actually contemplating dumping Bing for Google, it would certainly hit Microsoft very hard at a time when the software company had just begun to succeed in its efforts to take away some market share from Google.
Expressing his regrets about the lay offs, Scott Thompson stated that the changes would transform Yahoo into a slimmer and more profitable business with a stronger focus on its core priorities, which have been identified as core media and communications, platforms and data.
CEO Scott Thompson said in a statement.
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.
Unfortunately, reaching that goal requires the tough decision to eliminate positions. We deeply value our people and all theyve contributed to Yahoo!, Thompson added.
Although there are rumors floating around everywhere, one can only wait for Yahoo to begin its lay off process and see what would be Scott Thompsons next move to save the dying internet company. Further more, once Yahoo releases its Q1 results later this month it will throw some light on what will be the future of the employees who managed to escape the layoffs this time.