A worker moves a section of a Yahoo billboard in San Francisco in 2011. Credit: Getty Images
Yahoo! Inc. announced today that is cutting 2,000 jobs – or 14 per cent of its workforce – in the first mass layoffs under Chief Executive Scott Thompson.
The Sunnyvale, Calif. internet company expects to save $375m a year as a result of the cuts.
Thompson said in a statement:
Today's actions are an important next step toward a bold, new Yahoo! - smaller, nimbler, more profitable and better equipped to innovate as fast as our customers and our industry require... Our goal is to get back to our core purpose - putting our users and advertisers first - and we are moving aggressively to achieve that goal.
Yahoo began to notify employees of the cuts on Wednesday, but did not say which departments would be affected.
Thompson, former president of PayPal, joined Yahoo in January.
The current round of layoffs is the sixth in the past four years for Yahoo, which has seen increased competition from Google and Facebook. Last year, Facebook took in more display advertisement revenue than did Yahoo.
Yahoo's stock has been declining over the past six years, today worth less than half of what it was at the start of 2006. Shares were off one per cent Wednesday morning.
Yahoo releases first quarter results 17 April.