Yahoo! have confirmed that it is to cut 2,000 jobs, equal to 14% of its workforce as they aim to transform into a “bold, new Yahoo!”.
Restructuring has been long overdue at Yahoo! as it has gradually fallen from favour with web users who have migrated to services provided by Google and Facebook. A massive leap for the company, they are expected to save $375 million in the restructuring plans, with the cuts likely to affect marketing and development areas the hardest.
“Today’s actions are an important next step toward a bold, new Yahoo!,” said Yahoo CEO Scott Thompson.
“Smaller, nimbler, more profitable and better equipped to innovate as fast as our customers and our industry require.
“Our goal is to get back to our core purpose – putting our users and advertisers first – and we are moving aggressively to achieve that goal.”
The news follows reports that Facebook are counter-suing Yahoo!, having been accused of “basing its entire social network model” on Yahoo! architecture. Facebook struck back with a suit of its own, claiming Yahoo! have infringed on 10 patents belonging to Zuckerberg’s empire.
Via: Wall Street Journal