In the largest layoff in Yahoo’s 17 year history, the Sunnyvale Company will slash 2,000 jobs which is 14% of its workforce soon. On April 17, during the firm’s first-quarter earnings call, it will offer a blueprint of its "future direction" too, apart from the job cuts. This job slash is the company’s fifth biggest layoff in the past five years. These cuts will add $375 million annually to Yahoo’s kitty as the company tries to get advertisers as well as better its stock prices.
This was announced by Yahoo CEO Scott Thompson on Wednesday, 4th April as he put forward his bold plan to bring the company up to speed by targeting mobile, social and younger users. The ultimate motto is to get the advertisers back, who have been fast disappearing from the Yahoo interface.
As Scott Thompson has been quoted, "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."
The laying off of 2000 employees is the biggest one since the sacking of 1500 workers in 2008 during the Great Recession. Thompson has expressed himself clearly in a press release that the company won’t be restoring any jobs as they are aiming to turn Yahoo into a smaller, smarter and more nimble company. Only then can the company stand up against arch rivals Google and Facebook. Reports have revealed that these cuts have not been appreciated by Third Point, Yahoo's largest outside shareholder.
Yahoo’s business is being slipping away to Google, Facebook and Microsoft and it has to get its advertising search business back on tracks. This sacking is a part of Thompson’s aggressive and bold plan of bringing the company back to its feet. Till date, he has shuffled the board of directors, built issues with a major shareholder and sued Facebook for patent infringement. Thompson took charge in January 2012, after ex- CEO Carol Bartz’s ouster in September 2011.
A smaller size Yahoo, will it make the difference? Will the company be able to hold itself together? Does Yahoo need to go social and mobile at the earliest? Do share your views.2000 Yahoo! Employees to be Laid Off!,