February 11, 2016
Yahoo has handed pink slips to 107 of the employees at its headquarters in Sunnyvale, Calif.
The layoffs, which take effect April 11, were spread across the company, affecting people in multiple departments, according to a notice filed with the California Employment Development Department.
The reductions are the first of the approximately 1,700 job cuts announced by Yahoo CEO Marissa Mayer at the beginning of the month when she laid out the company’s plans for the future.
“As part of our strategic plan, we have made the difficult but necessary decision to reduce our workforce in order to more efficiently align resources and position the company for a stronger future,” Yahoo said in a statement to the media. “We will provide more clarity to our employees who are impacted by these decisions in the coming weeks.”
The staff reductions in the coming months will amount to 15 percent of Yahoo’s workforce. Most of the layoffs are expected to occur in the first quarter.
“By the end of 2016, the Company anticipates having approximately 9,000 employees and fewer than 1,000 contractors,” Yahoo said in a statement when the company released its fourth quarter earning report. “This represents a workforce that is roughly 42 percent smaller than it was in 2012 and will result in savings in short term operating expense of $400 million annually.”
Yahoo stock went up one percent to $27.10 Wednesday with the news of the job cuts. Overall, Yahoo is down roughly 18.5 percent in the past year.
Jennifer Cowan is the Managing Editor for SiteProNews.