Yahoo to cut 15 percent jobs, close several units Yahoo Inc (YHOO.O) Chief Executive Marissa Mayer is set to reveal cost-cutting plans that include slashing 15 percent of its workforce, or roughly 1,600 jobs, and closing several business units, the Wall Street Journal reported on Monday.
The plans are expected to be announced after Yahoo's fourth-quarter results on Tuesday, the Journal reported, citing people familiar with the matter. It did not specify which business units might be closed.
A Yahoo spokeswoman said the company could not comment during its quiet period before releasing earnings.
Activist investors have pressed Yahoo to sell its core business rather than spin it off, even though a sale would likely incur more taxes.
Fran Shammo, chief financial officer of Verizon Communications Inc (VZ.N), said in early December that the U.S. telecommunications company might be interested in acquiring Yahoo if it were up for sale. Other potential buyers would include media and private equity firms, analysts said.
Yahoo had about 11,000 employees as of June 30, according to its website, down from a Dec. 31, 2014 total of about 12,500 full-time employees and what it called fixed term contractors.
Last week Yahoo confirmed plans to close its offices in Argentina and Mexico. The company declined to specify how many jobs were affected, but said the offices were small and "sales-focused." Yahoo has struggled to expand its Internet business, which includes selling search and display ads on its news and sports sites and email service, in the face of competition from Alphabet Inc's (GOOGL.O) Google unit and Facebook Inc (FB.O).
Mayer's turnaround efforts have had little tangible effect so far.
Yahoo's revenue has fallen slightly since she took the helm in mid-2012, and its share of U.S. Web searches is essentially flat with three years ago, gaining no ground on market leader Google.
Yahoo's shares fell 1.2 percent to $29.14 in afternoon trading on Monday. As of Friday's close, the stock had lost about a third of its value over the year.
Groupon Inc. surged for a second straight trading day, this time after Alibaba Group Holding Ltd. bought a 5.6 percent stake in the online marketplace, rekindling investor interest as the company moves away from its roots as a daily deals provider.
The Chinese e-commerce company bought 33 million shares of Groupon, according to a regulatory filing Friday after the close of markets, making it the fourth-largest shareholder in the website that has lost about 80 percent of its value since going public in November 2011.
Perrigo Co. shares tumbled Monday as the company slashed its guidance for the year while announcing the departure of its Chief Executive Joseph Papa, who is moving to lead Valeant Pharmaceuticals International Inc.
The company, principally a maker of store-brand versions of cold and allergy medicines, now expects adjusted earnings to be between $8.20 and $8.60 a share, down sharply from its previous guidance for $9.50 to $9.80 a share.
Shares of the company slid 14% to $104.83 in midday trading.
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