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

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

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.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?