Yahoo Shakeup Will See 2,000 Employees Laid Off

In a move to return to its core purpose of putting users and advertisers first, Yahoo announced today that it would be laying off 2,000 employees. Although widely anticipated, the layoffs left some analysts skeptical, who said that revenue growth cannot occur solely from job cuts, and that people want to see a plan for growth. Yahoo CEO Scott Thompson said that the cuts will pave the way for a Yahoo that is better positioned to innovate at the speed of customer and industry demand. The cuts are expected to save Yahoo $375 million annually, and mark the start of determining a new direction for the internet giant, whose declining revenue can be attributed mainly to competition from Google and Facebook. More details are forthcoming with the release of the company’s first-quarter results, scheduled for release on April 17.

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