Yahoo employees may need to revamp their CVs as the company may slash about 15 percent of its workforce as part of its cost-cutting plans. Such percentage amounts to about 1,600 employees.
The announcement is expected to be released on Tuesday, after issuing the firm's fourth quarter numbers.
In October 2012, Marissa Mayer joined Yahoo as chief executive. She said she will grow and help redefine the company, which she described as "one of Internet's most loved".
With the impending future of Yahoo, that growth seems to never reach the light of the day because at the moment, Mayer will most likely shift focus. Market share out. Drastic cuts in.
When Mayer joined Yahoo, one of her distinct policies was to conduct quarterly employee performance reviews. Such review entails each employee to be ranked from one to five. Through this new policy, hundreds of employees got fired from the company starting from mid-2012.
"Our performance review process also allows for high performers to engage in increasingly larger opportunities at our company, as well as for low performers to be transitioned out." says Yahoo.
One of the affected employees of this new policy is Gregory Anderson. Anderson was an editor for different Yahoo web sections, including shopping, auto, home, travel and small business.
Anderson was fired in November 2014 and said that Yahoo's senior managers manipulated the results of the employee evaluations. He said the managers did this without due cause just so the firm can reach its financial objectives. He has filed a lawsuit against Yahoo.
In December 2014, Yahoo has 12,500 full-time and fixed term contractors. As of June 30, 2015, the employee count went down to 11,000.
Closing Down Offices
Yahoo announced last week that it will close down its offices in Mexico and Argentina. The firm did not identify the exact number of employees affected, but said that the offices are small and focused more on sales.
Yahoo For Sale
Activist investors suggest Yahoo to just sell the company instead of implementing numerous revamps.
Verizon Communications Inc. chief financial officer Fran Shammo expressed possible desire to buy Yahoo if it would be up for sale. Analysts said media and private equity companies may also be interested to buy Yahoo.
Since Mayer joined Yahoo, the revenue of the company has dropped slightly. The company has also struggled in the race of U.S. web search engines for the past three years.
On Monday, Yahoo's shares declined 1.2 percent to $29.12 in the afternoon trading.
Photo: Eirik Refsdal | Flickr