Pinkham Communications

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Yahoo's CEO Marisa Mayer To Cut Jobs

Chief executive officer of Yahoo Inc, Marissa Mayer said on 25th January during a world economic forum session.

According to a number of sources, approximately 100 to 200 employees working at yahoo will lose their job today. The firings are mainly focused on employees working in its Canadian offices; altogether it will affect around 1% of Yahoo’s global staff of 12,500.

Starboard Value LP an activist investor puts pressure on Ms. Mayer to reduce its expenditure. Last September, the investors in its letter to CEO advocated a plan to reduce the company cost by almost $500 million.

Yahoo! Inc.(NASDAQ:YHOO) management explains the firings are the part of the company plan of restructuring or realignment and it should consider as  general layoffs. The management further said, we are uncertain about the number of layoffs as the firings are across several groups.

One of the sources very close to the matter told business insider that, “People are kind of shell shocked”.

According to business insider, a number of the cuts are coming in the group of senior vice president of verticals and product homepage, Mike Kern. Yahoo is releasing product managers, program managers and designers. However, the company is retaining the engineers.

One source, who is in touch and close with dismissed employees only told business insider that the fired employees are offered severance for two months. However, their bonus for the year end 2014 is still not cleared by the company.

CEO Marissa Mayer has recently been in great pressure from investors to cut costs at the company after she became the CEO in 2012. Rather than deploying wide layoffs, she has preferred a system of retaining employees with good performance and firing those with low score.

Last year, the company hired McKinsey & Co., a management consultant firm in order to find out the efficiencies in its business. Earlier this month, Ken Goldman a Chief financial officer said that he was constantly working with McKinsey to discover areas to reduce head counts.

Mr. Goldman said, “We realize the fact that we continue to be more proficient and we are in the e procedure of going that”

Yahoo year end is about to come, and it might be possible that these layoffs are the part of that program Moreover, working with the consultant to find areas to reduce head count.

Ian Denomme, a writer for Yahoo Sports column in Canada posted on his Twitter account that company has cut nearly 35% of editorial staff in Canada.

View the original article here

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January 9, 2017 - Posted by | Uncategorized | , ,

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