Update: Yahoo details layoffs, restructuring plan

Troubled Web portal Yahoo will cut 400 jobs as part of a restructuring plan meant to diversify the company away from its dependence on advertising revenue. Another 100 new employees will be hired to help staff new strategic projects, said President and Chief Operating Officer Jeff Mallett, during a meeting with analysts Thursday which was broadcast over the Web.

"We think we've done the hard stuff," he said.

The company plans to narrow its focus from a current 44 business categories down to six: listings, access, commerce, communications, media and information, and enterprise, said Mallett.

Of the jobs cuts, 75 percent will come from Yahoo's international and broadcast businesses and among management; the remainder from sales, marketing, and support staff. It is likely this will include its Australian operations. "We won't know for another three weeks or so, though it is likely we will be affected," said a spokeswoman for Yahoo Australia.

The new plan calls for Yahoo to continue to offer free content, but to complement it with fee-driven services, said Terry Semel, who joined Yahoo as chairman and chief executive officer in May, after spending 24 years at Warner Brothers Inc.

"There is nothing wrong with advertising revenue ... we believe in it, but you will see that this will be a much more diversified company," he said.

Currently advertising accounts for some 80 percent of Yahoo's revenue, but Semel said his goal is to reduce that to 50 percent by 2004.

The restructuring plan was widely anticipated, after Yahoo released revenue results for the third quarter that were down by almost half compared with the same period last year.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Rick Perera

Computerworld
Show Comments

Cool Tech

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Breitling Superocean Heritage Chronographe 44

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?