NEW YORK (CNNMoney) -- Yahoo said Wednesday that it will eliminate 2,000 employees, around 14% of its workforce, as new CEO Scott Thompson begins radically streamlining the company.
The long-rumored job cuts could be the first of several rounds, as Thompson pares Yahoo (YHOO, Fortune 500) down to focus on what he views as the company's core business lines.
Thompson, who joined Yahoo in January, plans to provide more information about his strategy during the company's first-quarter earnings announcement, which is scheduled for April 17.
In a written statement, Thompson said the cuts "are an important next step toward a bold, new Yahoo -- smaller, nimbler, more profitable and better equipped to innovate. Our goal is to get back to our core purpose -- putting our users and advertisers first."
Yahoo said its job cuts will save the company $375 million a year when they are completed. It expects to take a $125 million to $145 million charge this quarter for severance costs.
No comments:
Post a Comment