Yahoo Cuts 2,000 Jobs
New Yahoo! CEO Scott Thompson begins his plan to streamline the company and cuts 2,000 jobs.
(Image Source: Yahoo.com ) BY BREANA JONES ANCHOR NATHAN BYRNE The private sector added more than 200,000 jobs last month, but one company that won’t be seeing that growth? Tech giant Yahoo!. On Wednesday, the company cut 2,000 jobs — that’s about 14 percent of its global workforce. Bloomberg’s got a breakdown of the numbers. “They had about 14,000 employees heading into this. The important part : it’s gonna try to save $375 million. ... It’s gonna cost about 125 million to 145 million dollars in pre-tax expense.” Forbes has a statement from CEO Scott Thompson on why the cuts were made. “ ‘Our goal is to get back to our core purpose — putting our users and advertisers first — and we are moving aggressively to achieve that goal,’ ” This could be the first of many changes for the company. Thompson started his post in January to re-focus the brand. CNN Money says it could be a tough fight. “The Internet's first giant portal has retained a massive user base, but has lost its edge in nearly every field to newer, nimbler rivals. The company gave up on search in 2009, and it's losing ground in display advertising to new entrants to the market such as Google and Facebook.” Despite 700 million online visitors a month, USA Today reports Yahoo! is missing out on a huge money opportunity. “Arguably one of the biggest missed opportunities of the last decade for Yahoo has been social networking. "The writing is on the wall. Yahoo doesn't have social, Yahoo doesn't have mobile," says IDC analyst Karsten Weide.” Business Insider reports one former Yahoo! manager blogged Thompson’s making the necessary moves to save the company, but should consider shaving a little more off the top. “My guess is that Yahoo could easily cut 20 to 25% of it ’ s staff without actually cutting much of its capabilities.” While Yahoo! cleans up in-house, the company is also dealing with a heated patent infringement battle against social media giant Facebook.