Yahoo! Inc. (NASDAQ:YHOO) is expected to cut 10% of current workforce, according to reports. Most of the job cuts will be in the department of media business, European operations as well platforms-technologies.
Official spokeswoman, Sarah Meron, chose not to confirm or deny the layoff-reports in the news media.
Starboard Value LP aggressive
Yahoo! Inc. (NASDAQ:YHOO) shareholders led by activist investor, Starboard Value LP have been demanded that the top-management do better for its investors. The activist group has indirectly sought CEO Marissa Meyers exit. They have also demanded ‘out-of-the-box’ top-executive decisions leading to profits.
They have expressed concerns about the commitment of Directors to investors and have threatened a shakeup of the existing board.
Earlier the activist investors had vetoed long-pending plans by Marissa Meyers to sell the stake Yahoo! Inc. (NASDAQ:YHOO) holds in ecommerce giant, Alibaba Group Holding Ltd. (NYSE:BABA). The tax liability of such a move would be not be in the favor of investors, they felt.
The activist group also demanded that there were alternatives to sale of BABA assets. The company could make better financial gains by spinning off the core business units itself, the activist investors proposed. This could include separating the advertising and fantasy sports business segments by the end of next year.
Turnaround plans
In the meanwhile, another of Yahoo! Inc. (NASDAQ:YHOO) spokeswoman, Rebecca Neufeld reported said further details of the turnaround plans would be provided. This would be before the fourth quarter earnings filings, expected towards the end of January.
