In what appears to be another episode in its drawn-out demise, Yahoo has announced a drastic strategy to offset Q4 losses: one many believe to be a heavy hint at its forthcoming sale.
According to a press release published on February 2, as part of Yahoo’s “aggressive strategic plan” to streamline the company and boost growth, its workforce will be reduced by around 15 percent. With around 9,000 fewer employees and 1,000 fewer contractors on the books, Yahoo hopes to achieve an annual operating cost saving of $400m.
The Yahoo worldwide employee base has been reduced by 42 percent since 2012
As part of the process, Yahoo will close its offices in Buenos Aires, Dubai, Madrid, Mexico City and Milan. The closures are expected to take place during the first quarter of the year. This is just the latest cut to the Yahoo worldwide employee base, which has been reduced by 42 percent since 2012, according to the press release.
The announcement came on the same day as another, in which Yahoo gave its Q4 results: an income loss of $4.5bn for the last quarter, totally around $4.7bn for the full year.
Since Marissa Mayer took the helm in 2012, she has taken various measures aimed at ending the company’s slow demise. These have included acquiring start-ups, refocusing on the business’ mobile division, and investing in new talent. But profits have continued to shrink as the company buckles under the pressure of competition from the likes of Google.
Given Yahoo’s unsurprising results for the past year and its decision to streamline the business worldwide, it does appear Mayer is preparing the company to be sold. If she’s not, then it’s going to be even more difficult for her to motivate Yahoo’s remaining staff – should she remain in her current role, of course.