Yahoo investor calls for firing 9,000 workers and replace CEO
SpringOwl Asset Management managing director Eric Jackson is calling for Yahoo to replace CEO Marissa Mayer and cut 75 percent, or 9,000, of its workforce.
Biz Journals reported that the managing director of the New York-based hedge fund aims to bring in a CEO who is operations-focused and find a partner that would help address the tax issues the company is facing. These are all outlined in his 99-page slide presentation that has been circulating recently.
According to CNN, Mayer has been trying for over three years to improve Yahoo's Internet advertising business. However, it can't out-compete Facebook and Google. Many analysts believe that the task of turning Yahoo around is an impossible task that she took. The company is already a lost cause when she became its head.
However, Jackson believes otherwise.
"Sometimes, when good ideas are voiced and discussed, they can have tremendously powerful effects," said Jackson in his 99 page case posted by Forbes. "Chris Sacca's recent 8,000 word blog post about Twitter had dramatic repercussions. I hope our sharing these ideas will have similarly strong effects before it's too late for this great company."
Jackson suggests cutting $2 billion yearly cost by firing 9,000 of the company's 11,900 workers and contractors. He also recommends removing the free food perks for employees. He also wants the company to sell its headquarters and rent a smaller office space instead.
However, Yahoo's bigger shareholders, like Starboard Value LP and Canyon Capital Advisors are calling for the tech company to venture on something else besides its core Internet Business.
Meanwhile, Jackson believes the company can still ask for $6 billion if it is sold now. However, with his plan to remove workers and replace the CEO, he believes the company could sell up to $24 billion. He even wants the logo to change to signal the end of Meyer's leadership.