Yahoo is laying off 2,000 employees as new CEO Scott Thompson sweeps out jobs that don't fit his plans for turning the firm around.
SAN FRANCISCO—Yahoo is laying off 2,000 employees as new CEO Scott Thompson sweeps out jobs that don’t fit his plans for turning the firm around.
The cuts represent about 14 per cent of the 14,100 workers at the Sunnyvale, Calif. Company.
The company estimated it will save about $375 million annually after the layoffs are completed later this year.
Some of the affected employees will stay on for an unspecified period of time to finish various projects, according to Yahoo.
The housecleaning marks Yahoo’s sixth mass layoff in four years under three different CEOs. This one will inflict the deepest cuts yet, eclipsing a cost-cutting spree that laid off 1,500 workers in late 2008 as Yahoo tried to cope with the recession.
Thompson is making his move three months after Yahoo lured him away from his previous job running eBay Inc.’s online payment service, PayPal.