San Francisco: Yahoo on Tuesday said it is cutting 15 percent of its workforce and narrowing its focus as it explores "strategic alternatives" for the future of the faded Internet star.
The announcement, coming with the release of a big quarterly loss, offered the first sign that Yahoo may be open to a sale or merger after years of struggling to regain its former glory.
The California company reported a loss of $4.43 billion in the final three months of last year, due mostly to lowering the value of its US, Canada, Europe, Latin America and Tumblr units. Revenue was up marginally from a year ago at $1.27 billion.
Yahoo said in a statement it was launching "an aggressive strategic plan to simplify the company, narrowing its focus on areas of strength to better fuel growth."
At the same time, it said it was looking at "additional strategic alternatives," suggesting it could seek a deal to sell or merge the company.
Bold shifts
Yahoo chief executive Marissa Mayer said she is launching "a strong plan calling for bold shifts in products and in resources" to help revive the company's fortunes.
She maintained that the plan would "dramatically brighten our future."
The plan is intended to drive growth in Yahoo's mobile, video, social and "native" ad offerings, a group of products which Mayer refers to as "Mavens."
Tuning offerings for mobile Internet users will be at the forefront as Yahoo focuses on its search, email, and online magazines, according to Mayer.
Online discovery, communication, and differentiated digital content are "what make Yahoo Yahoo," Mayer said.
Streamlining the company and putting it on a trajectory for improved earnings would also make it a more attractive acquisition.
AFP
