Struggling Internet company Yahoo! said it will
lay off 2,000 employees as part of a savings plan, a move that would
save $375 million in a year for the company.
"Today's
actions are an important next step toward a bold, new Yahoo -- smaller,
nimbler, more profitable and better equipped to innovate as fast as our
customers and our industry require," the newly appointed CEO of Yahoo,
Scott Thompson, said in a statement.
"We are intensifying our efforts on our core businesses and redeploying resources to our most urgent priorities," Thompson said.
"Our
goal is to get back to our core purpose -- putting our users and
advertisers first -- and we are moving aggressively to achieve that
goal," he said.
"As part of that effort, approximately 2,000 people will be notified of job elimination or phased transition," the company said.
Yahoo,
which has nearly 14,000 employees, has been struggling to increase its
share in the internet market amid tough competition from Google and
Facebook.
The move would represent the first major change under
new CEO, formerly head of eBay's PayPal unit, who took over in January,
following Carol Bartz's departure in September, 2011.
"Yahoo
expects to realise approximately $375 million of annualised savings upon
completion of all employee transitions," the company said.
The
company, which has nearly 700 million users, currently expects to
recognise the majority of an estimated $125 to $145 million pre-tax cash
charge relating to employee severance in its second quarter financial
results.
It may incur additional charges in connection with this action.
http://www.rediff.com/business/report/yahoo-to-cut-2000-jobs/20120405.htm