‘Bold, New’ Yahoo! To Cut its Workforce

This just in from Silicon Valley, courtesy of the New York Times: Struggling Internet giant Yahoo! is laying off 2,000 workers, or approximately 14 percent of its workforce, in a reorganization effort.

According to the company’s press release:

 “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. We are intensifying our efforts on our core businesses and redeploying resources to our most urgent priorities. 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,” said Scott Thompson, CEO of Yahoo!. “Unfortunately, reaching that goal requires the tough decision to eliminate positions. We deeply value our people and all they’ve contributed to Yahoo!.”
The company will begin the process of informing employees about these changes by notifying approximately 2,000 workers of either job elimination or phased transition, according to the release, which goes on to extoll the financial virtues of this move:

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.

Read the press release in full here.