Over the past several weeks, many reports have indicated that Yahoo will be introducing stringent measures to cut costs, and just last month, the company itself admitted as much, saying that a restructuring exercise will be undertaken in February in order to save the company’s balance sheet from taking any more beating. Now, the company is putting those plans into practice, as the Sunnyvale, CA-based internet company has now announced 107 redundancies as part of a broader cost-cutting exercise that is expected to result in over 1,500 Yahoo employees eventually losing their jobs this year. The job cuts will come into effect from the 11th of April, as per a notice filed with the California Employment Development Department. The company says it has already sent the mandatory 60-day advance notice to affected employees.
This, however, is just the beginning of the pain and uncertainty for Yahoo employees, as the company is apparently planning to cut 15 percent of its workforce meaning over 1,500 Yahoo employees may end up jobless by the time the company is through with its proposed restructuring. According to Reuters, Yahoo had about 11,000 employees as of June 30, 2015. Earlier this month, the company’s CEO, Marissa Mayer, had spoken about the need to cut costs in order to keep the company afloat, and getting rid of 15 percent of the workforce will apparently save Yahoo as much as $400 million yearly. Ms. Mayer, of course, is an ex-Google executive, who had worked as the company’s Vice President of Product Search, before joining Yahoo as its President and CEO back in 2012.
Yahoo has been experiencing heavy turmoil over the past decade, as its lead products – search and mail – have long been overshadowed by Google’s offerings in the same categories. Under Ms. Mayer, the company has been trying to focus on mobile and application software of late, but has continued to see subdued growth in recent times. Last week, the company reported a profit of $63 million on revenues of $1.27 billion for the final quarter of last year. Even though the company’s latest results were better than market expectations, the company has lost as much as 18.5 percent of its market cap this year alone, and has now officially put itself up for sale. There’s persistent talks of Verizon buying out the company’s internet business, although nothing has been finalized as yet.