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Yahoo firing thousands of workers to save millions of dollars

April 04, 2012|By Michelle Maltais
  • Flags fly behind a Yahoo sign at the company's headquarters in Sunnyvale, Calif.
Flags fly behind a Yahoo sign at the company's headquarters in Sunnyvale,… (Erin Lubin / Bloomberg News )

This morning, 2,000 Yahoo employees will get word they're being laid off.

The layoffs “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,”  Yahoo Chief Executive Scott Thompson said in a statement.

The cuts at the Sunnyvale, Calif.-based company to its 14,100 workforce represents about a 14% reduction that the company estimates will save about $375 million annually after being completed later this year.

This is Yahoo's sixth mass layoff in the last four years under three different CEOs. But Wednesday's announced cuts are the deepest yet.

“We are intensifying our efforts on our core businesses and redeploying resources to our most urgent priorities,” he said. “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.”

Thompson is making these cuts three months after Yahoo hired him away from eBay's online payment service, PayPal.

Some of those laid off will remain on staff for a period to finish projects, according to Yahoo.

The Associated Press contributed to this report.

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Yahoo laying off thousands of people to save millions of dollars 

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