Digital media business Yahoo! has announced restructuring plans this week, which will see around 2,000 people being “notified of job elimination or phased transition”.
Scott Thompson, the company’s CEO, said “Today’s actions are an important next step toward a bold, new Yahoo! - smaller, nimbler, more profitable and better equipped to innovate as fast as our customers and our industry require. We are intensifying our efforts on our core businesses and redeploying resources to our most urgent priorities. 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. 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 restructuring, Yahoo! says it plans to grow by responding more quickly to customer needs and competing more effectively in areas where it can win. Annual savings of approximately $375 million are expected when the redundancies have been completed.