Yahoo to cut 15 percent jobs, close several units

Yahoo to cut 15 percent jobs, close several units

Yahoo to cut 15 percent jobs, close several units

Written by Staff Writer

02 Feb, 2016 | 11:35 am

Yahoo Inc Chief Executive Marissa Mayer is set to reveal cost-cutting plans that include slashing 15 percent of the company’s workforce, or roughly 1,600 jobs, and closing several business units.

The plans are expected to be announced after Yahoo’s fourth-quarter results on Tuesday.

A Yahoo spokeswoman said the company could not comment during its quiet period before releasing earnings.

Activist investors have pressed Yahoo to sell its core business rather than spin it off, even though a sale would likely incur more taxes.

It is unclear whether the plan Mayer is expected to announce would satisfy their demands, but cutting costs could make Yahoo more attractive to buyers.

Verizon has said it is interested in acquiring Yahoo if it were up for sale. Other potential buyers would include media and private equity firms, analysts said.

Yahoo had about 11,000 employees as of June 30, according to its website, down from a Dec. 31, 2014 total of about 12,500 full-time employees and what it called fixed term contractors.

Yahoo has struggled to expand its Internet business, which includes selling search and display ads on its news and sports sites and email service, in the face of competition from Alphabet Inc’s Google unit and Facebook Inc.

Yahoo’s shares fell 1.2 percent to $29.14 in afternoon trading on Monday. As of Friday’s close, the stock had lost about a third of its value over the year.

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