Yahoo to slash 1,500 jobs

As a bookend to a tumultuous year, Yahoo has begun handing out pink slips to about 1,500 employees, acting on an earlier announcement that it would cut at least 10 per cent of its staff before year's end.

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As a bookend to a tumultuous year, Yahoo has begun handing out pink slips to about 1,500 employees, acting on an earlier announcement that it would cut at least 10 per cent of its staff before year's end.

The "at least" part of the announcement had left open the question of how many people would be let go, but Yahoo confirmed Wednesday that it will be a 10 per cent reduction of its about 15,000 employees.

"Better aligning costs with revenues now and in the future is an essential part of Yahoo's strategy to perform competitively given the current economic downturn and to position us for growth when the economy strengthens," Yahoo said in a statement.

The staff reduction is part of a plan intended to cut more than $400 million in costs on an annualised basis. "This is part of an ongoing effort to foster a culture of efficiency and cost discipline," the statement reads.

When it announced the layoffs in October, Yahoo also said that it plans to save money by relocating operations to places where it's cheaper to do business, consolidating its real estate, improving procurement and seeking efficiencies in its technology platform.

The affected employees will be supported with severance packages and other services. This round of layoffs is the second one this year for Yahoo, which cut 1,000 jobs in February.

Yahoo began 2008 with high hopes for a turnaround, after co-founder Jerry Yang took over as CEO from Terry Semel in June of 2007.

Yang vowed to restore Yahoo's innovation edge and to boost its finances, but despite setting in motion a number of ambitious business and technology initiatives, he failed to deliver the expected results.

NEXT: Yahoo's Yang loudly criticised over lack of Microsoft deal

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