Home / / Yahoo preparing for 10% workforce cut: reports

Yahoo preparing for 10% workforce cut: reports

Up to 1,000 people could be laid off in coming months

Yahoo preparing for 10% workforce cut: reports
Yahoo is opting to spin off its core business into a tax-free entity

Yahoo could soon be announcing job cuts that will see around 1,000 - or 10% of the company's workforce - laid off, according to a report in Business Insider.

The report said that the cuts would affect the fraught internet giant's media business most, though it added that the firm's European operations and platform business would also be affected.

The report comes hot on the heels of news that Yahoo is struggling with activist investor Starboard Value LP, which on Wednesday wrote a letter to the company calling CEO Marissa Mayer's leadership into question. The investor added that it would take actions at a board level if Yahoo's stock continues to underperform.

Yahoo is no stranger to threats from Starboard - the investor has long been pushing for large organisational changes. According to Starboard, Yahoo should auction off its core business and spin off its Asian assets, including its stake in China's Alibaba - a move which the company has so far resisted.

Yahoo is instead opting to spin off its core business into a tax-free entity.

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