Yahoo to Cut 15% of Workforce -- Update
February 02 2016 - 5:16PM
Dow Jones News
By Dana Mattioli and Douglas MacMillan
Yahoo Inc. on Tuesday announced plans to eliminate roughly 15%
of its workforce and explore the sale of nonstrategic assets, in
the company's latest plan to revitalize the Internet company.
The announcement accompanied Yahoo's fourth-quarter report in
which the company reported a loss of $4.4 billion on revenue of
$1.27 billion, up 1.6% year-over-year.
Yahoo said that by the end of 2016, it anticipates having about
9,000 employees and fewer than 1,000 contractors, which represents
a workforce that is roughly 42% smaller than it was in 2012. The
company sees the cuts resulting in savings of $400 million a
year.
The company also said it has begun to explore divesting
nonstrategic assets, such as nonstrategic patents, the sale of real
estate, and other noncore assets. Through the end of the year, the
company estimates that these efforts could generate between $1
billion and $3 billion in cash.
Shares of Yahoo, down 35% over the past year, fell 2% to $28.40
in after-hours trading.
Tuesday's announcements may not entirely appease activist
investor Starboard Value LP, which has called for Ms. Mayer's
resignation and a sale of the company. The firm has threatened to
wage a proxy battle if its requests aren't met.
Executives at Verizon Communications Inc. have publicly
expressed interest in buying Yahoo, and others, including firm
private-equity firm TPG Capital, have considered bidding for parts
or all of the Web business, according to people familiar with the
matter.
In December, Ms. Mayer and Chairman Maynard Webb said in an
interview that a sale isn't the most likely outcome. But Mr. Webb
said then that the board has a fiduciary duty to entertain any
offers.
Write to Douglas MacMillan at douglas.macmillan@wsj.com and Dana
Mattioli at dana.mattioli@wsj.com
(END) Dow Jones Newswires
February 02, 2016 17:01 ET (22:01 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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