Yahoo Cuts 2,000 Employees

Yahoo layoffs | BCBusiness
Yahoo, based in Sunnyvale, Calif., announced it will cut 2,000 jobs.

The Internet giant Yahoo announced Wednesday it would give the axe to 2,000 employees to create a ‘nimbler’ company.

Yahoo Inc. is shaking things up things up this week with thousands of pink slips. On Wednesday the company announced it plans to lay off 2,000 employees, which represents 14 per cent of its total workforce.
 
While the cuts were expected, the breadth of the layoffs is a little staggering and indicates the depth of Yahoo’s financial woes. This layoff is the sixth round of cuts in just four years for the company, though this is the most massive round yet. Back in 2008, the company delivered pink slips to 1,500 employees.
 
The massive layoff will save the company approximately $375 million a year, but Yahoo will have to take a $125 million to $145 million hit to dole out all the severance packages.
 
The company stated the cuts were meant to make Yahoo smaller and “nimbler,” but laying off thousands of employees doesn’t reverse tanking revenues. The cuts combined with Yahoo’s recent lawsuit accusing Facebook of infringing on 10 of its patents are the symptoms of a sinking ship trying to bail itself out with only a bucket.