Yahoo announced a restructuring that will eliminate 15% of its workforce or about 1,700 workers and close offices in five countries.
By the end of 2016, the Company anticipates having approximately 9,000 employees and fewer than 1,000 contractors. This represents a workforce that is roughly 42 percent smaller than it was in 2012 and will result in savings of $400 million annually.
The company will close offices in Dubai, Mexico City, Buenos Aires, Madrid, and Milan.
Yahoo said it plans to streamline services to reduce costs and improve efficiency. For consumer products, Yahoo will focus on three categories: Search, Mail, and Tumblr, and four verticals: News, Sports, Finance and Lifestyle in growth markets like the U.S., Canada, U.K., Germany, Hong Kong, and Taiwan. For advertisers, Yahoo will be defined by two core offerings: Gemini and BrightRoll. Gemini combines search and native ads for superior results, while BrightRoll offers programmatic buying and selling tools for video, display and native advertising.
For Yahoo’s search business, the company says mobile search is the biggest opportunity. Yahoo will shift most of the resources in this area toward more forward-leaning mobile search investments, positioning it to redefine search for mobile devices, which will help drive sustainable long-term growth and differentiation.
The company is also looking to sell assets that could generate $1 billion or more.