Yahoo (YHOO) Plans Slashing 2,000 Jobs in Latest Shake Up
Yahoo is in the midst of turmoil because of hostility from a major shareholder and a legal dispute with Facebook. It is planning to lay off about 2,000 employees in order to cut costs.
New York, April 4 (SharewellNewswire.com) - There is more turmoil at Yahoo (NASDAQ : YHOO) that has just changed its CEO and is facing hostility from a major shareholder. It is also grappling with a legal dispute with Facebook over technology patents. In the midst of all its troubles, the Internet company is planning to announce a massive round of layoffs, which could be about 2,000. An announcement to this effect is expected on Wednesday.
Yahoo is finding it difficult to keep pace with its rivals, Google (NASDAQ: GOOG) and Facebook. Last year, Facebook overtook Yahoo as the largest online display advertising carrier in the US. In order to tackle the complex situation, Yahoo has recently made a series of management overhauls and appointed PayPal chief executive, Scott Thompson, as chief executive in January after sacking Carol Bartz.
Yahoo has also been negotiating for a possible sale of assets including its share in the Chinese Internet company, Alibaba, but all the efforts went in vain. It received a severe jolt from one of its major shareholders, Third Point, that is campaigning to oust Yahoo’s management to revive the company.
It is also grappling with Facebook in a legal dispute over technology patents. Yahoo sued Facebook last month accusing it of violating its patents. This week, Facebook counter sued Yahoo, accusing it of violating patents that cover areas covering display-advertising, content personalization and photo sharing that were responsible for about 80 percent of Yahoo’s revenue last year.