Yahoo! to cut another 2,000 jobs in restructuring effort

April 4th, 2012 - 10:54 pm ICT by BNO News  

SAN FRANCISCO, CALIFORNIA (BNO NEWS) — Internet giant Yahoo!, Inc. on Wednesday said it will cut another 2,000 jobs, or about 14 percent of its global workforce, as part of a broader restructuring effort to make the company smaller and more profitable.

Yahoo! CEO Scott Thompson, who assumed the top position in early January, said the cuts are part of his plans to make the company smaller, nimbler, more profitable and better equipped to innovate faster at a pace the industry and its customers require. “We are intensifying our efforts on our core businesses and redeploying resources to our most urgent priorities,” he said.

Thompson said the new Yahoo! wants to ‘get back’ to its core purpose of putting users and advertisers first. “We are moving aggressively to achieve that goal,” he said. “Unfortunately, reaching that goal requires the tough decision to eliminate positions. We deeply value our people and all they’ve contributed to Yahoo!.”

As a result of the restructuring effort, Yahoo! said it will cut approximately 2,000 jobs, and affected employees are expected to be notified later on Wednesday. The dramatic job cuts are expected to save the company about $375 million a year, although severance pay will cost the company between $125 million and $145 million this year.

Wednesday’s job cuts are the largest yet for the struggling company, which has failed to keep up with social media giant Facebook and internet rival Google. Former CEO Carol Bartz was fired in September 2011 as he was unable to increase Yahoo!’s revenue, despite some 4,000 jobs being cut in the last four years.

Yahoo!, which currently employs about 14,000 people, has nearly 700 million users around the world.

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