Yahoo restructuring may include significant layoffs

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(AP File)

(KTSF by Sean Au)

Under the restructuring of Yahoo led by present CEO Scott Thompson, the company may be laying off thousands of employees to re-divert resources to help turn the company around.

Industry observers say Yahoo has been fending off stiff competition from other Silicon Valley giants like Google and Facebook in recent years. Add to that the impact of a weak economy, it is widely perceieved that Yahoo is struggling.

According to AllThingsD, an online portal owned by The Wall Street Journal, big changes are planned for Yahoo’s products department, which oversees most of the features that Yahoo users interact with. Other departments which will be affected include public relations, marketing and research.

Yahoo is currently also re-evaluating the sale of its assets in Asia and have halted talks temporarily with China’s Alibaba and Japan’s SoftBank.

According to its last quarterly report, Yahoo has 14,100 employees. Industry observers say restructuring layoffs can be in the thousands.

San Francisco State University College of Business’ Management Professor Sally Baack opines, “It comes at a tough time. We need this company to succeed. We need to see real success. If these cuts are at the right areas and enable resources to be diverted toward more profitable growth streams in the future, hopefully, there will be a rosey outcome at the end of this.”

Professor Baack emphasizes that Yahoo has 700,000 users every month and even achieved $1 billion in profits. She says that the business sector wants this Silicon Valley icon to succeed.

At this point, a Yahoo spokesperson would only say that that the leadership is engaged in a process that will generate significant strategic change at Yahoo, but final decisions have not yet been made at this point.

(Copyright 2012 KTSF. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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