The stock market is up 0.59% after Yahoo announced a layoff plan

Absrtact: Within one months, Yahoo's transformation from the board of directors gradually spread to the grassroots. The new CEO, Scott Thompson Scott Thompson, is intent on pushing Yahoo back into its core business to achieve the goal of advertising supremacy. Yahoo confirms that the company will reduce its staff of 2000 people, accounting for the global staff

Within one months, Yahoo's transformation from the board gradually spread to the grassroots. Scott Thompson, the new CEO, intends to push Yahoo back to its core business and achieve "Scott Thompson" goals.

Yahoo confirmed that the company will reduce its staff of 2000 people, accounting for about 14% of the global workforce, is expected to cut the cost of about 125 million-145 million U.S. dollars. It is the 6th time in the last four years that Yahoo has laid off and is on the biggest scale, and is expected to save about $375 million a year.

Return to the three core business

Yahoo, after the announcement of layoffs plan, the stock market contrarian rose 0.59%.

Macquarie Securities analyst B Enjam Inschachter believes that Thompson will push Yahoo to make a big transition, the future Yahoo is expected to undertake more targeted layoffs, and will be selective recruitment.

In an open letter, Thompson pointed out that the company will focus on the development of core business, redeployment of resources to the most important business, is currently the core tenet of the enterprise "users and advertisers first."

Thompson believes that Yahoo's core business includes: Core media and communications services, platforms, data. Among them, Thompson stressed to make the data Yahoo's competitive advantage, to provide users with a more personalized experience, and let advertisers understand the real needs of users.

However, Yahoo has not provided specifics on the new strategy, and has analyzed how the moves will boost revenue growth.

Based on the restructuring plan, Yahoo will have about 2000 employees were cut or phased transfer, is expected to save the company about 375 million dollars a year cost. The company expects the cost of layoffs to be about 125 million to 145 million dollars, most of which will be credited to second-quarter results, which are expected to be announced in the first quarterly results released 17th this month.

Yahoo has laid off 6 jobs in the past 6 years, involving nearly 6000 employees.

The future of restructuring is uncertain

Yahoo insiders told South reporters that the restructuring of the impact of the Department includes research and Development, public relations, search, International business unit, the edge of business.

However, the strategy did not get the approval of Yahoo shareholder Third Point CEO, activist investor Daniel Le Boux (D aniel S. Loeb). He said he was disappointed that Mr. Thompson had laid off the big cuts before elaborating on the strategic plan. Previously, Yahoo failed to reach a board appointment agreement with T Hirdpoint and appointed 3 independent directors last month.

According to Yahoo's previous estimate, its operating profit for the current quarter was 1, 500 million to 1, 5.5 billion U.S. dollars, below the average estimate of 1, 84.2 billion dollars by analysts in Bloomberg statistics. Yahoo is expected to announce its first-quarter results on April 17, and insiders are expected to announce management changes again, appointing a new group of senior executives to work with the restructuring plan. Zijianzhe, an international analyst at Analysys, believes that the current internal struggle against Yahoo is still fierce. "The radicals want to deal with Asian assets as soon as possible and receive cash compensation, while the other group still expects the new C E O to find another direction for Yahoo." ”

Reporter: Cherius intern Zhang

Data

Internet layoffs in recent years

Gao Peng: September 2011 Layoffs are expected to be more than 400 people, while in the domestic distribution of 13 local stations overall abolition

myspace:2011 47% Employees in January

Microsoft: May 2009 second round of layoffs 3600 people