Yahoo to lay off 15% of its workforce as part of ‘aggressive strategic plan’

Baku. 3 February. REPORT.AZ/ Yahoo announced plans today to implement an “aggressive strategic plan" in an effort to simplify itself as the company’s long-awaited turnaround fails to materialize. As part of that effort, it will be laying off approximately 15 percent of its workforce, consisting of 9,000 employees and fewer than 1,000 contractors, Report informs citing the foreign media.

In addition, the company will be closing five offices in Dubai, Mexico City, Buenos Aires, Madrid, and Milan. Yahoo announced the news within its fiscal fourth quarter 2015 earnings. It expects to save about $400 million annually from this move.

News of the layoffs arrive as the company reports revenue of $1.27 billion and $0.30 earnings per share for the fourth quarter — that’s up from $ 1.25 billion in revenue and down from earnings of $0.33 per share last year (Q4 2014).

Analysts, on average, expected Yahoo to report revenue of $1.19 billion and earnings of $0.13 per share for the quarter.

Shares in the company were down 1.72 percent for the day and closed at $29.06, although it briefly shot up after reports suggested Yahoo would announce it was exploring “strategic alternatives”.