Yahoo’s struggles look to be continuing, as reports indicate that company is planning to cut at least 10 percent of its 10,000-strong workforce as early as this month, sources told Business Insider.
The cuts come after Yahoo hired consultancy firm McKinsey & Co. to help decide which units to shutter. While the layoffs are expected to affect all parts of the company, Yahoo’s media business, european operations and platforms-technology group will likely be hit the hardest.
“A team is working on it and they want to do it this quarter,” one of Business Insider’s sources said of the layoffs. Yahoo hasn’t commented on the report, but it did say in an earlier statement that it would "share additional plans for a more focused Yahoo on or before" its fourth-quarter earnings call this month.
Yahoo shares have fallen 35 percent over the last year, and it has already reduced its employee numbers by 14 percent, down from 12,500 workers in 2014.
Yahoo brought in current CEO Marissa Mayer, formerly a Google executive, in July 2012 to try and turn around the company that once provided a huge number of popular internet services before the arrival of Google, Facebook and co. But despite the acquisition of Tumblr in 2013, activist investor Starboard Value LP says that Mayer’s turnaround isn’t working and that Yahoo should spinoff or sell its core business.
Some of Yahoo's other investors have reportedly said that this reorganization doesn’t go far enough and that more cuts are needed. Whatever happens, the future isn't looking very bright for the company that was the Google of its day.