Yahoo is cutting its workforce by 15% as part of an “aggressive strategic plan” to drive growth after dropping to a $4.4bn loss for 2015.
The loss was blamed on writedowns – cutting asset values – within its business during the final quarter of the year, as it prepared for the next phase in its turnaround.
Chief Executive Officer Marissa Mayer is exploring strategic alternatives for the company’s beleaguered Web business. As part of the cost cutting drive, Yahoo will fire employees, close more offices and devote more resources to increasing engagement with users, Yahoo said Tuesday in a statement.
Yahoo also said it was “exploring strategic alternatives” in addition to splitting that business from Yahoo’s lucrative 15% stake in Chinese online marketplace, Alibaba.
It also confirmed it was still unsure about the planned spin-off its internet business following an earlier U-turn on its plans.
Yahoo said it would simplify its product portfolio through the sale of non-core assets – a move it hoped could raise up to $3bn – and concentrate spending on achieving mobile growth through its Search, Mail and Tumblr platforms.
Up to 2,000 staff were affected by the immediate changes, the company said, which would involve the closure of regional offices worldwide in Dubai, Mexico City, Buenos Aires, Madrid, and Milan.
Mayer has been trying to steer the Web portal through one of the most challenging chapters in its more than 20-year history. As newer Internet search and content hubs such as Facebook and Google have lured advertisers, Yahoo has failed to keep pace, and sales have slipped since reaching a peak in 2008.