The New York Times is reporting
Yahoo!’s plan to layoff hundreds of employees in an effort to revive the company. According to the report, the mass layoffs are expected to increase profitability, improve its deflated stock price and narrow the company’s focus on core objectives.
Yahoo!’s large workforce of about 14,000 are expected to receive the news during a conference call today after it reports fourth quarter results, according to the NYT.
Company spokeswoman Dianna Wong declined to comment specifically on which areas of the company will be cut, but issued the following statement:
“Yahoo plans to invest in some areas, reduce emphasis in others, and eliminate some areas of the business that don’t support the company’s priorities. Yahoo continues to attract and hire talent against the company’s key initiatives to create long-term stockholder value.”
The last major layoffs at Yahoo! were in 2001, where roughly 13% of their workforce was cut. Similar to today’s expected layoffs, 2001 was a time of major restructuring in the company who re-aligned their 44 business units down to just 6.
In my opinion, small business owners should expect to hear news from Yahoo! regarding the changes in the company’s direction. Some services may be cut, new ones could be announced – I guess we will have to wait and see.