Yahoo is slashing 2,000 jobs, or about 14% of its workforce, the company announced today, in a long-expected cost-cutting move. The cuts will hit every department in the company, and sources tell the Wall Street Journal that yet more cost reduction measures are in the works, as Yahoo continues to wrestle with flat revenue growth and declining traffic.
But management did its best to put a positive spin on the changes. "Today's actions are an important next step toward a bold, new Yahoo—smaller, nimbler, more profitable, and better equipped to innovate," CEO Scott Thompson said. Thompson was hired in January with a mandate to cut costs and redouble efforts to improve Yahoo's advertising business. Executives admit some advertisers may be scared off by the layoffs, but say they'll give Yahoo the flexibility to invest in new services and businesses.