Yahoo Announces First Round of Job Cuts; 107 Sunnyvale Employees to Be Laid Off
Yahoo! gave 60-day notices to 107 Sunnyvale employees as a part of the company's revitalization plan, filed with the California Employment Development Department, Wednesday, Feb. 10.
As reported by Business Insider, layoffs will take effect April 11. Employees who were affected by the recent cutting are entitled for other jobs in Yahoo! and will also receive severance packages. The Sunnyvale cuts were spread across several job classifications mostly from the engineering departments.
Yahoo!'s rehabilitation plan's goal is to reduce its global workforce by 15 percent as the company struggles to meet their revenue goals. The plan involves the trimming of workforce and the reduction of its products. It is the strategy chosen by Yahoo! Chief Executive Officer Marissa Mayer in order to "revamp its core Internet business."
"As part of our strategic plan, we have made the difficult but necessary decision to reduce our workforce in order to more efficiently align resources and position the company for a stronger future," Yahoo! said in a statement that was emailed to USA Today. The company also said Yahoo! is looking forward to "provide more clarity" to their employees especially those that were impacted by the company's cost-cutting-related decisions.
Business experts said the company's struggle is caused by the company's flawed media strategy, late investment into products fit for mobile devices and strategies which hasn't produced expected return of investment.
Despite other experts' suggestions of selling the company in order to save it, CEO Mayer stands firm with the company's present strategic plan. As reported by USA Today, the company is presently looking for alternatives like selling some of Yahoo!'s net businesses and real estate. It is their way to raise more money which they can use to improve and update services and products.
"We believe a simplified Yahoo! will increase shareholder value over the long term," said CEO Marissa Mayer last week, Tuesday, during the company's earnings call. "Having fewer products means we can improve those products faster and increase profitability and focus."
Meanwhile, some employees were also told that Yahoo!'s Southern California and San Francisco offices will soon reduce their workforce. The number of affected positions is yet to be available.
Rob Enderle, an American technology analyst, said Yahoo!'s mass layoffs would only create an unhealthy working environment. Its strategy would make it "very hard for the company to function. Everybody is kind of concerned about their jobs, and the end result is they can't get much stuff done."
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