Yahoo is all set to stage a 10 percent layoff as a chunk of their planned restructuring. The downsizing is believed to lead towards a better business performance. This planned layoff will further reduce the headcount significantly. Such a massive layoff is anticipated to bring out disturbances in the regular business operations of the organization. As per the predictions, Yahoo’s European operations, technological platforms, and media companies tend to feature a worst hit. Irrespective of the operational disturbances, Yahoo is planning to stage a massive layoff this quarter. The organization has been receiving a chorus of criticisms from various activists and economists.
As a reply to the various criticisms, the company has put forth several additional strategies to evolve a more focused business operation. Yahoo’s directors in their statement to the Business Insider mentioned the great pressure that resulted due to the failure of their different businesses. They were on the verge of invigorating the industry, and the layoffs were thus an essential part. On the other hand, the workforce of the Yahoo was anticipating a layoff from the month of November. Yahoo had hired the McKinsey & Company during November to plan for the reorganization approach. Several potential units were scheduled for a shutdown.
A 10 percent layoff would trim the workforce further with 1000 and more employees leaving the portals of Yahoo. One of the important focus of Yahoo’s reorganization is going to be on the digital magazines’ platform. The company has closed the massive video hub and Yahoo screen to support the building of digital magazines. However, the budget for Yahoo’s magazines remains unframed. As a part of the cost-cutting practices, Yahoo has involved into several scale back operations. The company is also planning for a quick layoff before the time for paying annual bonus arrives. The organization has also brought a huge area near its headquarter in the Silicon Valley. The future of Yahoo is still awaiting to crystallize