As reported by the Wall Street Journal on Monday, Yahoo on Tuesday officially said that it’s cutting 15% of its workforce, or about 1,600 jobs, and is putting itself on the auction block.
The news came as part of Yahoo’s fourth-quarter earnings call, in which the company reported quarterly revenue of $1.27 billion, up from the previous quarter’s $1.18 billion.
The company is slimming down significantly, with a workforce that will be 42% smaller than it was in 2012. The cuts should result in savings of $400 million in short-term operating expenses annually, it said.
On the consumer side, Yahoo is focusing on three platforms globally: search, with an emphasis on mobile; Mail and blogging platform Tumblr, which Yahoo acquired in May 2013 for $1.1 billion. Yahoo also will collapse its content focus into four pillars: news, sports, finance and lifestyle and focus on “growth markets” including the U.S., Canada, the U.K., Germany, Hong Kong and Taiwan. Conversely, it will shut down offices in Dubai, Mexico City, Buenos Aires, Madrid and Milan.
Yahoo CEO Marissa Mayer, famously recruited from Google in 2012, has been under increasing pressure from stockholders to sell or spin off Yahoo’s core businesses, which it is now in the process of doing.
This is the second large announcement of workforce cuts this week, with 21st Century Fox on Monday saying it was planning to offer employees voluntary buyout packages with an eye toward shaving $250 million in costs.
Brief Take: Yahoo’s been trying to turn itself around for years, but it’s increasingly difficult to feel confident that the once formidable online platform is going to be able to accomplish that.
Read more: Variety
[Image of Marissa Mayer courtesy of the AP via Variety]