Yahoo! Inc. (NASDAQ:YHOO) announced today plans to cut 2,000 jobs (14% of the workforce). The company announced that the plan would result in $375 million of annualized savings. Although, the company did not mention anything, it is obvious, that they feel pressure from Daniel Loeb. Loeb is the largest shareholder of Yahoo, and ValueWalk has been covering his proxy war with the company, quite extensively . The company also notes its 'great' business, and that it will provide more details on the job cuts, when the company announces earnings this month.
Part of the press release is quoted below:
Yahoo! has a solid foundation — nearly 700 million users and thousands of advertisers that engage with Yahoo! properties regularly and trust the company with their data and their business. Through its restructuring efforts, Yahoo! intends to grow by responding more quickly to customer needs and competing more effectively in areas where it can win. Yahoo! has identified key parts of the business — a select group of core businesses, the platforms that support those core businesses, and the data that drives deep personalization for users and ROI for advertisers — where the company will intensify efforts and redeploy resources globally, all focused on increasing shareholder value. With a clear focus on profitability and growth, the company will be disciplined in its investments and radically simplify how it builds, launches and maintains many of its properties and products.
Today, the company will begin the process of informing employees about these changes. As part of that effort, approximately 2,000 people will be notified of job elimination or phased transition.
Yahoo! expects to realize approximately $375 million of annualized savings upon completion of all employee transitions. The company currently expects to recognize the majority of an estimated $125 to $145 million pretax cash charge relating to employee severance in its second quarter financial results. The company may incur additional charges in connection with this action. More information will be provided about Yahoo!'s future direction in conjunction with the release of its first quarter financial results on April 17, 2012.
Full press release at the following link-http://yhoo.client.shareholder.com/releasedetail.cfm?ReleaseID=661799