Thousands of jobs to go in major Yahoo restructure
Yahoo’s new chief executive, Scott Thompson, is reported to be planning a major restructure of the troubled web firm’s business, which is likely to result in thousands of layoffs, according to a Wall Street Journal report.
The changes could be announced as soon as the end of this month and will hit Yahoo’s products division. Its public relations and marketing, research and weaker regional operations are also said to be under threat.
The restructure is Thompson’s effort to stamp his authority on the company and follows the news last month that Yahoo! has threatened Facebook with lawsuit over patents.
Last month Yahoo’s chairman, Roy Bostock, and three directors quit the board in overhaul. They followed founder Jerry Yang’s departure in January.
While Yahoo has been subject to numerous layoffs over the years, none has been as large as what is now being contemplated to slash costs. The Sunnyvale, Calif., company has 14,100 employees, according to its latest quarterly report. But according to people familiar with the matter, the company also has a large contingent of software contractors.
“It is going to be deep,” said one manager who hasn’t yet been given specific numbers to cut, but said that it appears as if each unit will be required to show either substantive savings or a clear path to great growth in revenue, the WSJ reports.