Yahoo Inc., the online marketer, will cut 400 jobs, or more than 12% of its work force, as it reorganizes in search of “sustainable, profitable growth,” according to wire service reports.
The Sunnyvale, CA-based company is condensing 44 business units into six to help reduce its reliance on advertising and to generate new paid services, said company chairman/CEO Terry Semel.
These layoffs follow a 420-person job cut last April.
Company president/COO officer Jeff Mallett said this second round is necessary not only to cut costs, but to put resources where they will need to be for the company’s next stage of growth.
Although 400 employees will be cut from Yahoo’s 3,256-member work force, about 100 employees will be added in new positions created by the restructuring–for a net loss of around 300.
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