Scott Thompson, the new CEO of Yahoo, has plans to turn around the company and he is getting rid of jobs that do not fit into his agenda.
According to the Star
, the cuts were announced on Wednesday. The layoffs account for around 14 percent of the 14,100 people who work for Yahoo.
Yahoo estimates that they will be able to save close to $400 million a year, once the cuts are completed. The cuts will be completed later on this year.
According to Reuters
, the layoffs were expected. However, there are some analysts who are skeptical about the move.
Colin Gillis, of BGC Partners, said that the company cannot cut their way in order to see revenue growth. Gillis went onto say that people want to see a plan and provision to increase revenues.
According to USA Today,
the layoffs may be the only thing left to help the company survive against Google, Facebook and Microsoft.
Thompson said that the company will be putting a lot of their resources into urgent priorities. He went onto say that the company has a goal and that goal is to get back to their core purpose, which is to put advertisers and users first.