Yahoo! to Layoff Thousands in Restructuring Move

By KSEE News

Yahoo! to Layoff Thousands in Restructuring Move

April 4, 2012 Updated Apr 4, 2012 at 12:12 PM PDT

In a long-anticipated move, struggling Internet giant Yahoo! said Wednesday that it would be cutting 2,000 jobs, or about 14 percent, of its workforce.

The move is part of a major restructuring of the company, Yahoo! said in a statement. The cuts announced Wednesday represent 14 percent of the 14,100 workers employed by Yahoo, which is based in Sunnyvale, Calif.

"Today, the company will begin the process of informing employees about these changes. As part of that effort, approximately 2,000 people will be notified of job elimination or phased transition," the statement said.

"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," said Scott Thompson, CEO of Yahoo.

Some analysts seemed skeptical about the layoffs. "You can't cut your way to revenue growth," said Colin Gillis of BGC Partners. "What people want to see out of Yahoo is they want to see a plan and provision for revenue growth."

The layoffs come as Yahoo's revenue declines amid competition from Web rivals Google Inc and Facebook.

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