The embattled Internet giant announced plans to cut 2,000 employees early on Wednesday, as tries to reshape itself for the future.
|Yahoo! announced layoffs early on Wednesday.|
CEO Scott Thompson said in a press release that the firm is trying to become more nimble, profitable and faster.
"We are intensifying our efforts on our core businesses and redeploying resources to our most urgent priorities," he 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."Yahoo! said it expects to take a pretax cash charge of $125 million to $145 million in its second-quarter, but will save $375 million every year after the layoffs are done. Speculation about layoffs at Yahoo! has been bandied about for weeks, and finally the cuts are here. Eric Jackson, co-founder of Ironfire Capital tweeted that he expects an additional 3,000 job cuts by the end of May, as Yahoo! tries to bring its cost structure in line with revenue. Jackson is long shares of Yahoo!. Yahoo!, which has come under sustained attack from activist investor Daniel Loeb, is going to hold its first-quarter earnings results on April 17. Shares of Yahoo! are down slightly in Wednesday trading, off 0.2% to $15.15. Interested in more on Yahoo!? See TheStreet Ratings' report card for this stock. Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices. --Written by Chris Ciaccia in New York >To follow the writer on Twitter, go to http://twitter.com/commodity_bull. >To submit a news tip, send an email to: firstname.lastname@example.org
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV