New brooms sweep clean. In an effort to jumpstart growth, new Chief Executive of Yahoo Inc. (YHOO), Scott Thompson has announced to lay off 14 percent of Yahoo’s workforce or 2,000 people. The reason mentioned by him for deepest of job cuts in years is to save hundreds of millions of dollars to make the company more agile and leaner.
Reaction of Wall Street was not indifferent because previous two Yahoo Chief Executive Officers could not get an answer to competitors such as the Facebook social-networking site and the Web-search leader Google.
In an all-staff memo, Scott Thompson defended his move by saying that the changes would convert Yahoo to concentrate on its main businesses, which according to him are “data”, “platforms” and “core media and communications”. He announced that the changes would let Yahoo to move quickly, to get things done and to put customers first. He assured that the proposed changes would culminate in a more profitable, nimbler and smaller organization. He also informed that Yahoo is redeploying resources and intensifying efforts on core businesses.
Yahoo would provide more information about its plans on the occasion of its release of first-quarter results on April 17.Previous Post » Stocks To Watch – Gaining and Volume