There was no literal bloodshed inside the offices of Yahoo today, but it was a bloody Wednesday by all accounts.
Today, the Internet search company announced plans to slash some 2,000 jobs amidst ongoing efforts to totally regroup, reshape, and restructure the embattled company.
For Yahoo, the move amounts to a workforce reduction of approximately 14%. But it’s something that new CEO Scott Thompson believes is essential.
Thompson called the workforce reduction “an important next step toward a bold, new Yahoo — smaller, nimbler, more profitable and better equipped to innovate. Our goal is to get back to our core purpose — putting our users and advertisers first.”
Although the job cuts will help Yahoo save $375 million a year, the company will first have to distribute some $125 million or more in severance costs in relation to those cuts.
Wednesday’s announced employment cutback is, without question, the biggest and boldest move made at Yahoo during Thompson’s tenure, which began only in December.