Yahoo! "Updated": new losses, cuts, new legal action and new strategy
Long-suffering Internet company Yahoo! Once again, will hold massive reductions in staff. Allegedly, without this, the company will not be able to achieve the required financial indicators.
As part of the protracted restructuring, Yahoo intends to undertake a whole range of measures aimed at reducing costs. However, most of them will again be reduced to the closure of a number of units and cuts. The company will leave 15% of the state, and this is 1.6 thousand people. Yahoo will close five offices - in Dubai, Mexico City, Buenos Aires, Madrid and Milan.
About plans to abandon non-core areas Yahoo! CEO Marissa Mayer (Marissa Mayer) announced back in October 2015, without providing any details.
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Under the leadership of Mayer, Yahoo! decreased from approximately 14 thousand as of 2012 to 10.7 thousand people in the last quarter. The last time a major reduction was carried out in the first nine months of 2015, then 1.8 thousand employees were laid off, mainly in the company's representative offices outside the United States, including China, India and Canada.
Meier was named Yahoo CEO in October 2012. She then promised that the company's business will grow again. Instead, only expenses have risen, including the expensive parties that Meyer loved to arrange. As a result, some investors Yahoo has accused her of incompetence and demanded the dismissal of Meyer. It is assumed that the above measures will help Meyer to gain loyalty from investors.
Regulators may be interested in new abbreviations. A former employee of the company Gregory Anderson (Gregory Anderson) argues that Meier manipulates the estimates of employees in order to get a reason to dismiss as many people as possible. He spelled out his charges in a relevant lawsuit against Yahoo. Meier repeatedly referred to the employee rating system to find the weakest ones. According to this system, every quarter, all Yahoo employees rank their success on a scale from one to five.
Officially, the company reported on the reductions and new measures to reduce costs on February 2 in a message .
According to Yahoo, these measures will help reduce operating expenses by $ 400 million per year.
Closing offices and downsizing staff is one of the four points of Yahoo’s new development strategy. As part of the new strategy, Yahoo will focus on interacting with users. The company will partially get rid of Internet assets - as a result, search, email and Tumblr will remain.
In this case, the word "get rid" can mean the sale of assets. This brings us back to last year's news about the upcoming sale of the company's Internet business. Then interest in buying Yahoo showed telecommunications giant Verizon Communications . He can combine Yahoo’s advertising and media assets with AOL , which he bought back last year for $ 4.4 billion.
Yahoo's asset valuation is problematic, since the company's capitalization (about $ 27 billion) is mainly tied to the valuation of its stake in Alibaba and Yahoo Japan . The business of the Internet company itself can cost, according to some analysts, about $ 3.4 billion.
Subdivisions of the news digest Yahoo will unite and include in one of the main headings of the electronic journal, while others will close. In addition, the company intends to abandon the services of Yahoo Games and Smart TV, which showed unsatisfactory results.
In addition, Yahoo plans to increase resource traffic to 1 billion per month.
The company believes that in 2017-2018 financial results will finally improve.
In the meantime, the net loss of the American company in the fourth quarter of 2015 was $ 4.4 billion versus a net profit of $ 166 million a year earlier.
Revenue for the reporting period reached $ 1.27 billion, showing a 1.6% growth year on year. In particular, revenue from the search engine Yahoo has increased over the same period last year by 12% to $ 521 million.
Adjusted EBITDA fell 48% to $ 214.6 million.
At the end of the quarter, free cash flow amounted to $ 31 million versus $ 75 million for the same period last year.
As part of the protracted restructuring, Yahoo intends to undertake a whole range of measures aimed at reducing costs. However, most of them will again be reduced to the closure of a number of units and cuts. The company will leave 15% of the state, and this is 1.6 thousand people. Yahoo will close five offices - in Dubai, Mexico City, Buenos Aires, Madrid and Milan.
About plans to abandon non-core areas Yahoo! CEO Marissa Mayer (Marissa Mayer) announced back in October 2015, without providing any details.
')
Under the leadership of Mayer, Yahoo! decreased from approximately 14 thousand as of 2012 to 10.7 thousand people in the last quarter. The last time a major reduction was carried out in the first nine months of 2015, then 1.8 thousand employees were laid off, mainly in the company's representative offices outside the United States, including China, India and Canada.
Meier was named Yahoo CEO in October 2012. She then promised that the company's business will grow again. Instead, only expenses have risen, including the expensive parties that Meyer loved to arrange. As a result, some investors Yahoo has accused her of incompetence and demanded the dismissal of Meyer. It is assumed that the above measures will help Meyer to gain loyalty from investors.
Regulators may be interested in new abbreviations. A former employee of the company Gregory Anderson (Gregory Anderson) argues that Meier manipulates the estimates of employees in order to get a reason to dismiss as many people as possible. He spelled out his charges in a relevant lawsuit against Yahoo. Meier repeatedly referred to the employee rating system to find the weakest ones. According to this system, every quarter, all Yahoo employees rank their success on a scale from one to five.
Officially, the company reported on the reductions and new measures to reduce costs on February 2 in a message .
According to Yahoo, these measures will help reduce operating expenses by $ 400 million per year.
Closing offices and downsizing staff is one of the four points of Yahoo’s new development strategy. As part of the new strategy, Yahoo will focus on interacting with users. The company will partially get rid of Internet assets - as a result, search, email and Tumblr will remain.
In this case, the word "get rid" can mean the sale of assets. This brings us back to last year's news about the upcoming sale of the company's Internet business. Then interest in buying Yahoo showed telecommunications giant Verizon Communications . He can combine Yahoo’s advertising and media assets with AOL , which he bought back last year for $ 4.4 billion.
Yahoo's asset valuation is problematic, since the company's capitalization (about $ 27 billion) is mainly tied to the valuation of its stake in Alibaba and Yahoo Japan . The business of the Internet company itself can cost, according to some analysts, about $ 3.4 billion.
Subdivisions of the news digest Yahoo will unite and include in one of the main headings of the electronic journal, while others will close. In addition, the company intends to abandon the services of Yahoo Games and Smart TV, which showed unsatisfactory results.
In addition, Yahoo plans to increase resource traffic to 1 billion per month.
The company believes that in 2017-2018 financial results will finally improve.
In the meantime, the net loss of the American company in the fourth quarter of 2015 was $ 4.4 billion versus a net profit of $ 166 million a year earlier.
Revenue for the reporting period reached $ 1.27 billion, showing a 1.6% growth year on year. In particular, revenue from the search engine Yahoo has increased over the same period last year by 12% to $ 521 million.
Adjusted EBITDA fell 48% to $ 214.6 million.
At the end of the quarter, free cash flow amounted to $ 31 million versus $ 75 million for the same period last year.
Source: https://habr.com/ru/post/298388/
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