Yahoo to cut 15 percent jobs, close several units: WSJ

Mon Feb 1, 2016 9:20pm EST
 
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(Reuters) - Yahoo Inc YHOO.O Chief Executive Marissa Mayer is set to reveal cost-cutting plans that include slashing 15 percent of the company's workforce, or roughly 1,600 jobs, and closing several business units, the Wall Street Journal reported on Monday.

The plans are expected to be announced after Yahoo's fourth-quarter results on Tuesday, the Journal reported, citing people familiar with the matter. (on.wsj.com/1Tx30jF) It did not specify which business units might be closed.

A Yahoo spokeswoman said the company could not comment during its quiet period before releasing earnings.

Activist investors have pressed Yahoo to sell its core business rather than spin it off, even though a sale would likely incur more taxes.

It is unclear whether the plan Mayer is expected to announce would satisfy their demands, but cutting costs could make Yahoo more attractive to buyers.

Verizon has said it is interested in acquiring Yahoo if it were up for sale. Other potential buyers would include media and private equity firms, analysts said.

Yahoo had about 11,000 employees as of June 30, according to its website, down from a Dec. 31, 2014 total of about 12,500 full-time employees and what it called fixed term contractors.(bit.ly/1P0L4uC)

Separately, a former Yahoo employee filed a lawsuit against the company Monday challenging its "quarterly performance review" process, on grounds it assigned numerical ratings to workers that in some cases were used to fire those at the bottom of the scale.

The lawsuit, filed in federal court in San Jose, California, said the plaintiff was terminated in 2014, despite being previously praised, as a result of the QPR process.   Continued...

 
The Yahoo logo is shown at the company's headquarters in Sunnyvale, California April 16, 2013. REUTERS/Robert Galbraith/Files