Yahoo Plans To Lay off 15 Percent Of Workforce As Part Of ‘Strategic Plan For Growth’
Yahoo said it plans to cut 15 percent of its workforce in order to explore a new strategic plan that aims for the development of the multinational technology company.
In a press release Tuesday, the company said: "Yahoo! Inc. will announce today an aggressive strategic plan to simplify the company, narrowing its focus on areas of strength to better fuel growth, drive revenue and increase efficiency in 2016 and beyond."
Yahoo said the strategic plan aspires to develop consumer as well as advertiser product value and increase daily active users (DAU). The company also aims to improve its profitability, decrease operating expenditures and explore non-strategic asset.
"Today, we're announcing a strategic plan that we strongly believe will enable us to accelerate Yahoo's transformation," Yahoo CEO Marissa Mayer said. "This is a strong plan calling for bold shifts in products and in resources."
"We are extremely proud of the billion dollar plus business we have built in mobile, video, native and social. Our strategic bets in Mavens have enabled us build an entirely new, forward-leaning business of tremendous scale and growth in just three years."
She added, "The plan announced today builds from that achievement and will dramatically brighten our future and improve our competitiveness, and attractiveness to users, advertisers, and partners."
Time reported Tuesday that some 1,700 employees will be laid off from the company. Aside from that, Yahoo reportedly plans to close its offices in Dubai, Mexico City, Buenos Aires, Madrid and Milan.
The company forecasts it will have about 9,000 employees and less than 1,000 contractors by the end of 2016.
"Yahoo does not take this decision lightly and will make every effort to handle the process with thoughtfulness, transparency and compassion," the company said.
Yahoo's Chairman of the Board, Maynard Webb, said discovering new strategic plans would benefit the company's shareholders.
"The Board is committed to the turnaround efforts of the management team and supportive of the plan announced today," Webb said. "We have tremendous respect for the thousands of Yahoos who work very hard to make the world a better place."
He went on, "The Board also believes that exploring additional strategic alternatives, in parallel to the execution of the management plan, is in the best interest of our shareholders. Separating our Alibaba stake from our operating business continues to be a primary focus, and our most direct path to value maximization. In addition to continuing work on the reverse spin, which we've discussed previously, we will engage on qualified strategic proposals."
