Yahoo CEO, Scott Thompson, took over in early 2012 and since that day everyone has wondered what he would do to bring some glory back to the beleaguered internet giant. Apparently, it starts with layoffs. Thompson announced that Yahoo would be laying off approximately 2,000 employees. The cuts represent about 14% of the 14,000 workers employed by Yahoo.
The company announced that it will save about $375 million annually after the layoffs are completed later this year. Yahoo will also have to absorb between $125-$145 million in severance packages, which will reduce its earning in the current quarter, but help save them some money over the long haul.
The layoffs are part of an overhaul aimed at focusing on what Thompson believes are Yahoo’s strengths while attempting to correct its weaknesses in mobile computing. Yahoo’s CEO feels that his company will be able to sell more advertising if it’s more efficient in the analysis of the personal information that it collects from the 700 million visitors it has to its website each month.
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image credit: Randy Stewart on flickr