Yahoo is reportedly planning a huge restructuring strategy, including layoffs that are likely to number in the thousands, according to a news report. The report, from technology news site All Things D, comes as the internet giant ushers in a new CEO Scott Thompson and leadership team following a turbulent few years losing market share […]
Yahoo is reportedly planning a huge restructuring strategy, including layoffs that are likely to number in the thousands, according to a news report. The report, from technology news site All Things D, comes as the internet giant ushers in a new CEO Scott Thompson and leadership team following a turbulent few years losing market share to the likes of Google and Facebook.
Citing “multiple sources both inside and outside the Silicon Valley Internet giant,” the report said the restructuring, which could be announced as soon as the end of this month, is “being aimed at Yahoo’s large products organization, as well as other arenas in which the company has lagged in.
These units include public relations and marketing, research, marginal businesses and weaker regional efforts, the website said.
Yahoo is speaking with a number of outside firms and recently hired Boston Consulting Group to help the struggling Internet search firm focus on “growth” initiatives and to help determine the best path for Yahoo going forward, according to the report.
Thompson has led a quick push for change at Yahoo since his appointment at the start of the year.
Most controversially, he has threatened patent litigation against Facebook. Yahoo recently warned the social network that it will face legal action if it refuses to sign licensing deals for patents Yahoo believes Facebook is using for its advertising systems.
Thompson also played a role in how Yahoo should sell its Asian assets back to partners there, and he appears to be looking widely across Yahoo in order to jumpstart what has largely been a failed turnaround for the company under previous leadership, AllThingsD.com said.
One a model Internet company, Yahoo has struggled in recent years. Former CEO Carol Bartz was fired late last year and replaced by ex-PayPal chief Scott Thompson. Co-founder and former CEO Jerry Yang left the company in January.
