It is being reported that Yahoo Inc. will begin its much anticipated restructuring effort this month when it lays off thousands of employees next week. The company's complete restructuring initiative will be announced the week after.
Three months after hiring Scott Thompson, the former PayPal president, as CEO, Yahoo Inc. will begin its transition phase to restructure the Internet search engine juggernaut starting next week.
AllThingsD.com reported that multiple unnamed sources have told the Internet and technology blog that Yahoo will let thousands of its employees go. One week after, the company will release its comprehensive restructuring plan. Thompson has discussed the plans thoroughly at two meetings earlier this week – revisions could still be implemented, though.
What will we see? A trimmed down organization that will focus on media and advertising. However, the primary goal is to lay off a significant number of its 14,000 employees. It will not take place at once, but in segments as it tries to eradicate its ad technology and search business, which contain approximately 2,500 workers.
Thompson has met with Google and Microsoft representatives about its two departments.
Digital Journal first reported on the rumors of layoffs earlier this month.
In recent years, Yahoo has seen its revenue decline due to intense competition from Google and Facebook. The company has been proactive, though, as it tries to gain the portion of search engine users who are concerned about their privacy.
By early summer, it is expected that Yahoo will include a “Do Not Track” feature on its websites. This option will allow search users to opt out of having their data tracked by advertisers, which is in compliance with a new Federal Trade Commission recommendation.
There was a storm of controversy in late February when it was learned that Google users would have until Mar. 1 to delete their web history. The Internet giant will now collect data from your web history.