After several days of rumors, first reported by AllThingsD, Yahoo confirmed this morning that it’s restructuring and laying off 2,000 employees:
Today, the company will begin the process of informing employees about these changes. As part of that effort, approximately 2,000 people will be notified of job elimination or phased transition.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. The company may incur additional charges in connection with this action . . .
Yahoo currently has about 14,000 employees. The company hasn’t indicated where the axe will fall. However AllThingsD’s Kara Swisher (based on her inside informants) speculates that layoffs will be across the board but hit several areas in particular:
The layoffs, which will touch all units of the company, are expected to hit hardest in the product division, which is headed by Blake Irving . . .But the fate of two key parts of the soon-to-be-blown-apart unit � Yahoo�s advertising technology businesses, Right Media and APT, and its search business � is still being contemplated . . . Also set to be hard hit are Yahoo�s local businesses, as well as its marketing and research divisions . . .
Swisher further speculates that current Yahoo search chief Shashi Seth “is likely to run consumer products,” which will house whatever remains of Yahoo’s search business. It’s pretty clear, however, that whatever efforts Yahoo had been making around search innovation will be greatly diminished now if not entirely eliminated.
We’ll have to wait to see what remains of Yahoo after the dust settles — but it’s looking like not much. Oh the humanity.
Public domain image via US government archives.�Related Entries
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