We’ve been hearing a lot about Yahoo over the past couple of months, and none of what we’ve heard has been good. The latest batch of news about the struggling company suggests that it’s considering laying off at least 10% of its workforce, most of which will come from its “media business, its European operations and its platforms technology group.” If activist investor Eric Jackson had his way, however, the percentage of Yahoo’s workforce being laid off would be about 75%, including CEO Marissa Meyer herself, and he’s not the only person suggesting that she be replaced.
With Yahoo struggling to turn itself around, the flailing company is reportedly planing to lay off at least 10% of its workforce. Business Insider reports that the cuts will likely happen in the first quarter and could occur as early as this month. The layoffs will be felt company-wide, but are expected to largely impact Yahoo’s “media business, its European operations and its platforms technology group,” the site reports. Quartz reached out to Yahoo, which declined to comment. The Sunnyvale, California-based company had a rocky 2015, with its stock ending the year down 34%. To appease investors, the company initially planned to spin off its 15% stake in Chinese ecommerce giant Alibaba, but ultimately scrapped the plan when it became unclear if the transaction would go through tax-free. Under pressure from activist shareholder Starboard Value, Yahoo said in December that it would instead attempt a complicated reverse spinoff, keeping its Alibaba stake and spinning off its core business. Since the announcement, another activist investor, Eric Jackson of SpringOwl Asset Management, has proposed an alternative plan that includes bringing on a new CEO to replace Marissa Mayer, laying off 75% of Yahoo’s staff, and cutting back on lavish perks. On Jan. 6, Starboard CEO Jeffrey Smith also called for leadership change at Yahoo, though he did not explicitly name Mayer.
