YAHOO yesterday began notifying 2,000 of its staff that their jobs no longer exist, as the internet company embarked on its sixth major round of jobs cuts in the last four years.
Yahoo said it expects to realise $375m (£235.7m) of annual savings from the restructure, but it could incur a one-off charge of $125m to $145m from the move, visible in its second quarter results in a fortnight.
The tech group branded the move to cut 14 per cent of its workforce as “taking important next steps to reshape the company for the future.”
Chief executive Scott Thompson, who joined Yahoo from PayPal in January, said the actions will take the company towards a “bold, new Yahoo” which is “smaller, nimbler, more profitable and better equipped to innovate as fast as our customers and our industry require”.
Thompson is Yahoo’s fourth boss in five years after former chief Carol Bartz was ousted in September for failing to revamp the struggling company. Its co-founder Jerry Yang resigned from the board soon after.