Yahoo announcing on Tuesday more than 1,600 job cuts — 15% of its workforce — and the closure of operations in five cities amid middling quarterly results. CEO Marissa Mayer said that Yahoo was going to keep trying to turn itself around.
“Today, we’re announcing a strategic plan that we strongly believe will enable us to accelerate Yahoo’s transformation,” said Mayer. “This is a strong plan calling for bold shifts in products and in resources.”
She outlined cost cuts of $400 million, $1 billion of asset sales and other promises to do better. The turnaround of the turnaround.
While Yahoo chairman Maynard Webb said “The Board also believes that exploring additional strategic alternatives, in parallel to the execution of the management plan, is in the best interest of our shareholders. Separating our Alibaba stake from our operating business continues to be a primary focus, and our most direct path to value maximization. In addition to continuing work on the reverse spin, which we’ve discussed previously, we will engage on qualified strategic proposals.”
That is very Easy to crack code for We are for sale – in whole or in parts.
Various analyst estimates had expected the Silicon Valley Internet giant to deliver revenue of $1.2 billion, a flat performance with lowered earnings of 13 cents. It basically hit that, doing a little better ($1.25 billion a year ago in the same period and $1.27 billion this year). By the way, Yahoo earned 30 cents a share in the same period a year ago.
Yahoo shares have declined 34 percent over the last year, down 12 percent in 2016.
