updated 05:00 am EST, Tue March 6, 2012
Yahoo prepping for major restructure, job loses
Following the hiring of ex-PayPal chief Scott Thompson as CEO, Yahoo is said to be preparing to make major cuts to its workforce. In conjunction with the hiring of Thompson, the Yahoo board also hired the Boston Consulting Group to conduct a strategic review of the organisation. The restructuring is expected to result in what could amount to job loses in the 'thousands' according to sources familiar with the matter.
When a formal response was sought from Yahoo, the company did not deny that major changes were on the cards. 'As we have indicated, our leadership is engaged in a process that will generate significant strategic change at Yahoo, but final decisions have not yet been made at this point,' the company said in an emailed statement. 'Beyond that, we will not comment,' the company added.
The Internet pioneer has been struggling to adapt to a constantly evolving web landscape. Last year its revenues dropped by over 20 percent in 2011, leading the company to sack outspoken former CEO Carol Bartz. Following Bartz's dismissal, several board members resigned including the chairman which followd the resignation of co-founder Jerry Chen. It is currently looking at offloading shares in China's Alibaba, which is worth in excess of $2 billion while also realigning its business around its major earners. [via Reuters]