Yahoo Poised to Lay Off Thousands

New CEO Scott Thompson plans major restructuring, sources say
By Rob Quinn,  Newser Staff
Posted Mar 5, 2012 11:22 PM CST
Updated Mar 6, 2012 1:19 AM CST
Former PayPal chief Scott Thompson became Yahoo CEO in January.   (AP Photo/Paul Sakuma, File)
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(Newser) – Yahoo's new CEO is planning a major shake-up of the business that's expected to involve thousands of layoffs, sources tell All Things Digital. Scott Thompson, who has been pushing for quick changes since taking charge early this year, is eyeing big cuts in Yahoo's large products organization, as well as in PR, research, and marginal business operations, the sources say. Some sections will be cut away, leaving "resources to go to better efforts," according to one insider. "This has to be a true change to get this company back on track."

Thompson—whose first act as CEO was to threaten Facebook with patent lawsuits—has told investors that he plans to look at new business models and revenue sources. "Our 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,” a Yahoo spokeswoman says. “Beyond that, we will not comment." (Read more Yahoo stories.)

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