Yahoo announced the reduction of 4 percent of its workforce
Author: Qwerty
New York. The Internet portal Yahoo announced today that it will reduce its workforce by 4 percent, which will mean laying off about 600 employees in an effort to improve its finances.
“The personnel changes announced today are part of our ongoing strategy to position Yahoo the best possible place in revenue growth and increased margins,” the company said in a statement that ended with the rumors that during weeks have planned for the future of its workforce.
The company, which for a couple of years struggling to find ways to increase revenues while watching rivals such as Google and Facebook will eat ground said, however, continue to recruit staff, “globally to support our priorities key. ”
This is the fourth time in three years that Yahoo leads to layoffs in order to boost their profits and achieve improved operating margins, after the economic crisis affecting the company due to the reduction of advertisers.
Some media had pointed out today that new cuts would affect 5% of its workforce, so finally announced as it affects fewer people than expected.
“Yahoo appreciates the important contributions made by employees affected by this reduction. We are offering compensation,” explained the Californian firm in the same statement.
The cut is also a new effort by Carol Bartz, president and CEO of Yahoo since 2009, to improve the situation of a company that suffers raise revenues, while some of its competitors are experiencing a good moment, like Google, that year announced a rise in wages to their employees.
In its latest results, announced last October and for the third quarter, Yahoo beat market expectations and achieved a net profit of $ 396 million, 113% more than the same period in 2009, but left patent their difficulties to increase their income.
Between July and September, Yahoo reported a minimum increase of their income, which rose up to U.S. $ 1.601 million, just 2% over the same quarter a year earlier.
These difficulties have led to numerous media speculate that Bartz not come to fulfill his contract, which expires in 2013 – due to their lack of effectiveness in fulfilling the objectives of the firm.
In 2008, Yahoo rejected a takeover bid by Microsoft for U.S. $ 44,600 million, a price which, according to the website, undervalued the company and since then, rumors have abounded that point to the interest of other companies in done with it.
The last operation is strongly sound merger, U.S. media reported last November, would be willing to do with Yahoo U.S. internet group AOL, which already had contacts with the firm prior to joining forces.
Yahoo shares fell 0.4% today to close at $ 16.63 each on the Nasdaq, which accumulated a loss of 0.89% of its value so far this year, and where, after the announcement of layoffs, were down 0.3% in electronic trading that take place after closing the regular session.
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Tags: Bartz, Carol Bartz, Facebook, Google, Nasdaq, New York, Web portal, Yahoo