Yahoo preparing massive restructuring, thousands of jobs in jeopardy

By on March 5, 2012, 4:30 PM

Newly appointed Yahoo CEO Scott Thompson is said to be preparing a major restructuring plan that includes a vast number of layoffs. Multiple sources have told All Things D that thousands of employees at the Internet giant could be looking for a new job as early as the end of this month.

The layoffs are believed to be targeting multiple facets of the company including marketing and public relations, research, marginal business and Yahoo’s large products organization; all are divisions that the company has fallen behind on in recent times.

Yahoo implemented a company-wide hiring freeze in January as part of a cost-reduction initiative drawn up by Thompson. It was noted at the time that additional measures would likely be needed to set Yahoo back on the right path.

Analyst Ben Schachter from Macquarie Capital echoes these sentiments, telling CNBC that the world is changing and people are using the Internet in different ways than in the past. He feels that a restructuring plan is mandatory should Yahoo plan to exist in the future. He additionally feels that Thompson is the right person for the job, citing his previous role as president of PayPal.

Thompson hasn’t wasted any time in getting the ball rolling either. He recently hired Boston Consulting Group in an effort to help focus on growth initiatives moving forward and even threatened patent litigation against Facebook should they refuse to sign licensing deals regarding the social network’s use of advertising systems.




User Comments: 6

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TomSEA TomSEA, TechSpot Chancellor, said:

Yahoo! is falling apart at the seams. They're the "new" AOL.

Raswan Raswan said:

TomSEA said:

Yahoo! is falling apart at the seams. They're the "new" AOL.

Agreed. They won't exist in a couple of years.

Prosercunus said:

I used Yahoo! sometimes to check the finance/stocks section... however I had to ditch using it for even that simple thing. The stories that they put on their front page are awful. I would be embarrassed to put on my resume that I use to write for Yahoo!

ikesmasher said:

I hope that means they fire their article writers, including Chris Chase (if anyone knows who im talking about)

amstech amstech, TechSpot Enthusiast, said:

Scott Thompson must love the movie 'Office Space'.

R3DP3NGUIN R3DP3NGUIN said:

I remember Yahoo when it was more like Google, just a plain and simple logo. Yahoo was the first search engine I ever used. I always believed Yahoo was the direct competitor to Google. Thesedays maybe its Bing or just Google for one.

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