Yahoo Inc exploring strategic options, cutting 15% of staff as CEO Mayer tries to save her own job – FINANCIAL NEWS-ecozik.com
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Yahoo Inc exploring strategic options, cutting 15% of staff as CEO Mayer tries to save her own job

The overhaul probably represents CEO Marissa Mayer's last chance to persuade restless shareholders she has figured out how to revive Yahoo's growth after 3 1/2 years of futility.

Yahoo! Inc. Ceo Marissa Mayer is exploring strategic alternatives for some of the company’s beleaguered Web businesses while slashing staff by about 15 percent and exiting product lines, giving directly into demands by restive shareholders displeased by her failure to enhance growth.

The Sunnyvale, California-based company will fire employees (about 1,700 staff, according to The Associated Press), shutter more offices and devote more resources to increasing engagement with users, Yahoo said Tuesday inside a statement. Mayer’s plan was unveiled as the company reported fourth-quarter sales and profit that exceeded analysts’ estimates, offering a bright spot to shareholders who have seen the stock drop 35 per cent in the past year.

The overhaul probably represents Mayer’s last chance to persuade restless shareholders she’s figured out how you can revive Yahoo’s growth after 3 1/2 many years of futility.

Activist investors for example Starboard Value LP have been with leadership changes or perhaps an outright sale of Yahoo’s main business. Mayer has been attempting to steer the net portal through one of the most challenging chapters in its a lot more than 20-year history. As newer Internet search and content hubs for example Facebook Inc. and Google have lured advertisers, Yahoo has failed to keep pace, and purchasers have slipped since reaching an optimum in 2008. Late last year Mayer abandoned an agenda to spin off valuable Asian assets to shareholders, heightening criticism about her strategy.

“It’s difficult to turn around Internet companies,” said Shyam Patil, an analyst at Susquehanna International Group LLP. “Either you’re kind of in the sweet spot, or you’re not.”

Shares of Yahoo were little changed in extended trading. The stock fell 1.7 percent to US$29.08 at Tuesday’s close in New York, bringing the decline for that year to 13 per cent.

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