
Yahoo Confirms Plans to Cut 4% of Staff
NEW YORK (
) --
Yahoo
(YHOO)
confirmed Tuesday it's laying off 4% of its workforce, eliminating roughly 600 positions.
"Today's personnel changes are part of our ongoing strategy to best position Yahoo! for revenue growth and margin expansion and to support our strategy to deliver differentiated products to the marketplace," a company spokesperson said in an emailed statement. "We'll continue to hire on a global basis to support our key priorities."
The stock closed Tuesday at $16.63, down 7 cents. Year-to-date, the shares are roughly flat but they have bounced 26% since reaching a 52-week low of $13.14 on Aug. 25. Most of Wall Street has adopted a wait-and-see attitude toward Yahoo with 19 of the 34 analysts covering the stock rating it at hold. The analysts' median 12-month price target on the stock sits at $18, implying 8% upside from current levels.
"We are offering severance packages and outplacement services to these employees," Yahoo said in its statement, although further details of these provisions weren't available. Reports of impending job cuts began surfacing on Monday. The layoffs are believed to mainly impact the company's product group.
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Written by Michael Baron in New York.
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