The move has long been expected from one of the giants of the tech world. Yahoo! has ran into troubles for quite some time and things needed to change. In a bid to do so apparently, Yahoo has announced that it will be laying 2,000 of its workers through job elimination or phased transition. This essentially would mean that Yahoo will be laying off some 14% of its total staff which comprises of 14,000 workers.
In a statement released today, Yahoo’s CEO Scott Thompson stated, ‘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.’
Thompson did seem well aware of the shock the lay-offs would be for the workers, as always is the case. He went on to state, ‘Unfortunately, reaching that goal requires the tough decision to eliminate positions. We deeply value our people and all they’ve contributed to Yahoo!’
Clearly, the move is meant to get the investors back on board with the management. Since Yahoo’s troubles began, investors have been increasingly unhappy and demanding. This is precisely why Yahoo didn’t forget to mention that through these lay-offs, it can realize $375 million in annualized savings. As an indication of the consent and approval of the investors and shareholders, Yahoo’s shares went up several cents since the decision was made public. One can only hope that there really is a brighter future for the company which was once considered among the pioneers of innovation online.
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