Yahoo To Close 5 Offices, Reduce Workforce

The good times certainly cannot continue forever, as the cyclical nature of business comes into play. Tech giant Yahoo has not had the best of times over the years, but they are still a force to be reckoned with. However, in the latest reports from the company, it was mentioned that Yahoo will be closing down five offices, and reducing their workforce by 1,700 heads. This will help to trip the operational budget, with 2016 being the year where the company will focus on the mobile department instead.

It looks like Yahoo have been trying out a myriad of ways to turn itself around, and its latest “aggressive strategic plan” would be to focus on its strength – which would be the mobile department. As for the offices that will be affected, those would be located in Dubai, Mexico City, Buenos Aires, Madrid and Milan, and this would mean Yahoo will have a head count of 9,000 before the year is over, as part of the plan to lower operating costs by $400 million in the year ahead.

While Yahoo made $1.27 billion in revenue over the quarter, they had to go through a massive writedown of $4.5 billion. Yahoo CEO Marissa Mayer shared, “Today, we’re announcing a strategic plan that we strongly believe will enable us to accelerate Yahoo’s transformation. This is a strong plan calling for bold shifts in products and in resources.”

Well, workforce reduction is normally one of the first steps that companies take, such as what HTC and eBay did last year. [Press Release]

Edwin Kee
Categories: General
Tags: Yahoo