Yahoo is reportedly
laying off about 1,700 employees and closing five office.
The
long-anticipated purge will fire 15 percent of Yahoo's workforce along
with an assortment of services including Smart TV and online magazines.
Yahoo
also said it was 'exploring strategic alternatives' in addition to the
continued pursuit of the reverse spin-off of its Internet business, the
strongest sign yet that Mayer may be willing to sell the struggling
Internet business of Yahoo, which was a web pioneer in the 1990s but has
since been eclipsed by Alphabet's Google and Facebook in the battle for
online advertisers.
Mayer
proposed in December that Yahoo spin off its main business, which
includes its search engine, digital advertising units and its email
service, after Yahoo abandoned efforts to sell its stake in Chinese
e-commerce giant Alibaba Group Holding Ltd. But the company had provided
few details.
'Separating
our Alibaba stake from our operating business continues to be a primary
focus, and our most direct path to value maximization,' said Maynard
Webb, Yahoo's chairman.
'In
addition to continuing work on the reverse spin, which we've discussed
previously, we will engage on qualified strategic proposals.'
Traffic
acquisition costs (TAC), the amount Yahoo spends to attract users to
its websites, rose to $271 million in the fourth quarter ended Dec. 31,
from $74 million a year earlier.
Yahoo's revenue - after deducting fees paid to partner websites - fell to $1.00 billion from $1.18 billion.
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