Yahoo to sack staff in quarterly earnings report announcement
Embattled Internet pioneer Yahoo will announce job cuts when it releases its quarterly earnings report on Tuesday, according to a report in The Wall Street Journal. Yahoo chief executive Marissa Mayer will lay out a cost-cutting plan that includes chopping 15 per cent of the work force, an estimate 1,600 positions, the Journal said citing unnamed people close to the matter.
The cuts would come as a key investor in Yahoo pressures the board of directors for a management change. Activist hedge fund Starboard Value last month said investors appear to “have lost all confidence in management and the board” after the company, led by Silicon Valley star Mayer, has failed to turn around Yahoo’s core Internet business.
In a letter to the board, Starboard said Yahoo needs to sell off the core business to other investors, but that so far the company has ignored expressions of interest from buyers. Starboard argued that “significant changes are desperately needed.” In December, SpringOwl, another sizeable Yahoo investor, demanded the company cut more than 80 percent of its workforce and replace chief executive Mayer.