Yahoo's Restructuring Includes Laying Off 15% Of Workers

Yahoo has announced what it calls an "aggressive strategic plan" that will narrow down its focus and, more importantly for staff, result in a massive round of layoffs. CEO Marissa Mayer said she believes the new plan will "enable us to accelerate Yahoo's transformation," but many remain doubtful in light of the company's longstanding struggles. This comes a short while after rumors surfaced stating the company was considering selling off large parts of its business.

The company announced its new business plan earlier this week, and nestled at the bottom of its statement was an announcement that Yahoo is planning to "exit five offices in Dubai, Buenos Aires, Madrid, Mexico City, and Milan," as well as cut about 15-percent of its workforce.

Says the company, most of this will happen in the first quarter of this year; however, by the time 2016 meets its end, Yahoo is looking at an overall worker count of 9,000, and less than 1,000 contractors. In contrast to 2012, such numbers — assuming they are achieved — will be 42-percent or so lower. The company anticipates saving $400 million a year in operating expenses short term by doing this.

According to Mayer, the company anticipates it will achieve "modest and accelerating growth" next year and the year after by making these moves. Said the company in a statement:

Yahoo does not take this decision lightly and will make every effort to handle the process with thoughtfulness, transparency, and compassion.

SOURCE: Venture Beat