Yahoo (NSDQ: YHOO) is confirming what has been an open secret for most of the day — that it has cut about 600 employees, or roughly four percent of its workforce. In a statement, the company calls the layoffs “part of our ongoing strategy to best position Yahoo for revenue growth and margin expansion and to support our strategy to deliver differentiated products to the marketplace.” The layoffs follow a series of reports that suggested Yahoo was preparing to cut as many as 10 percent of its employees, primarily in its product group.
This is the second major round of layoffs under CEO Carol Bartz; soon after Bartz took over in early 2009, Yahoo cut five percent of its workforce, or about 675 jobs. This summer, the company also cut an unspecified number of jobs in its search group.
A year ago, Bartz declared that the company was “done” with layoffs, but Yahoo remains under pressure to improve its profitability, especially since it has set very lofty goals for improving its operating margins.
Yahoo had 13,500 employees at the beginning of 2009, a figure that had grown to 13,900 at the start of this year. Yahoo’s statement that today’s job cuts included four percent of its workforce implies that it had 15,000 employees prior to the layoffs, a figure that will now drop to 14,400.
Here’s Yahoo’s full statement on the layoffs:
Today’s personnel changes are part of our ongoing strategy to best position Yahoo! for revenue growth and margin expansion and to support our strategy to deliver differentiated products to the marketplace. We’ll continue to hire on a global basis to support our key priorities.
Yahoo! is grateful for the important contributions made by the employees affected by this reduction. We are offering severance packages and outplacement services to these employees.