Yahoo will lay off 2,000 people as part of the company's
effort fo reconstruct its business and save cash.
"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," said Scott Thompson, CEO of Yahoo.
"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," Thompson added.
"Unfortunately, reaching that goal requires the tough
decision to eliminate positions. We deeply value our
people and all they've contributed to Yahoo."
Through its restructuring efforts, Yahoo intends to grow
"by responding more quickly to customer needs and
competing more effectively in areas where it can win."
Yahoo has identified key parts of the business - a select
group of core businesses, the platforms that support
those core businesses, and the data that drives deep
personalization for users and ROI for advertisers - where
the company will intensify efforts and redeploy resources
globally, all focused on increasing shareholder value.
Yahoo said said it would save $375 million annually from
the cuts, and will incur a pretax cash charge in the
second quarter of $125 million to $145 million.
Yahoo said it would provide more details of its plans
when first-quarter results are released on April 17.