Yahoo Restructuring: 107 Employees Received Layoff Notice As Part of The Planned 1,500 Job Cuts
Yahoo announced that it will lay off 107 jobs starting April 11. The layoff is just the first phase of a much bigger restructuring plan involving more than 1,500 job cuts in total, about 15 percent of the company's workforce. The 107 employees already received their written 60-day advance on Wednesday.
The layoffs were spread across a range of departments and job titles, but the majority of the affected positions seems to be engineering roles, as reported by Bizjournals. When the whole restructuring plan is carried out, the tech giant would have 9,000 employees and fewer than 1,000 contractors. It's likely that most of the layoffs notices would already be issued by the end of March, giving the affected employees 60 more days before they have to leave the office.
The plan was first announced by Yahoo CEO Marissa Mayer during the company's fourth-quarter earnings call earlier this month. Mayer stated that the company will have to cut about 15 percent of its workforce to help revamp its core internet business.
Re/code argued that Mayer's decision was in some degree influenced by some outside advisers. McKinsey & Co., also Goldman Sachs and Qatalyst Partners are helping the company through numbers of issues under the leadership of Marissa Mayer. The mentioned advisers were also reportedly involved in one of the company's biggest decision to separate its stakes in the Alibaba Group.
Since she took the helm three years ago, Mayer has been trying to make some changes to improve the company. She had her rise and fall, and now the investors appear to have lost faith in her leadership and demanded a change in management, including Mayer to be replaced.
Mayer started out with a mission to save Yahoo amid fierce competition in the tech and digital age. People had their hopes up when she was first appointed to lead the company. But until now, Yahoo is still undergoing slowing growth and seeing complicated internal conflicts. According to Business Insider, Yahoo's shares are down about 18.5 percent this year, at $27.10 on Wednesday.
Besides job cuts, Yahoo's plan also involve shutting down some website portals and closing five of its offices. The company plans to exit Dubai, Mexico City, Buenos Aires, Madrid, and Milan.
Yahoo's layoff that was announced on Wednesday affected 107 employees from across departments and job titles. However, it's just the first batch of what is planned to be a huge restructuring, with as much as 1,500 job cuts, as settled by Yahoo CEO Marissa Mayer.