Yahoo! Outlines Restructuring
SUNNYVALE, Calif.--(BUSINESS WIRE)--
Yahoo! today confirmed that it is taking important next steps to reshape
the company for the future.
"Today's actions are an important next step toward a bold, new Yahoo! —
smaller, nimbler, more profitable and better equipped to innovate as
fast as our customers and our industry require. We are intensifying our
efforts on our core businesses and redeploying resources to our most
urgent priorities. Our goal is to get back to our core purpose — putting
our users and advertisers first — and we are moving aggressively to
achieve that goal," said Scott Thompson, CEO of Yahoo!. "Unfortunately,
reaching that goal requires the tough decision to eliminate positions.
We deeply value our people and all they've contributed to Yahoo!."
Yahoo! has a solid foundation — nearly 700 million users and thousands
of advertisers that engage with Yahoo! properties regularly and trust
the company with their data and their business. Through its
restructuring efforts, Yahoo! intends to grow by responding more quickly
to customer needs and competing more effectively in areas where it can
win. Yahoo! has identified key parts of the business — a select group of
core businesses, the platforms that support those core businesses, and
the data that drives deep personalization for users and ROI for
advertisers — where the company will intensify efforts and redeploy
resources globally, all focused on increasing shareholder value. With a
clear focus on profitability and growth, the company will be disciplined
in its investments and radically simplify how it builds, launches and
maintains many of its properties and products.
Today, the company will begin the process of informing employees about
these changes. As part of that effort, approximately 2,000 people will
be notified of job elimination or phased transition.
Yahoo! expects to realize approximately $375 million of annualized
savings upon completion of all employee transitions. The company
currently expects to recognize the majority of an estimated $125 to $145
million pretax cash charge relating to employee severance in its second
quarter financial results. The company may incur additional charges in
connection with this action. More information will be provided about
Yahoo!'s future direction in conjunction with the release of its first
quarter financial results on April 17, 2012.
About Yahoo!
Yahoo! is the premier digital media company, creating deeply personal
digital experiences that keep more than half a billion people connected
to what matters most to them, across devices and around the globe. And
Yahoo!'s unique combination of Science + Art + Scale connects
advertisers to the consumers who build their businesses. Yahoo! is
headquartered in Sunnyvale, California. For more information, visit the
pressroom (pressroom.yahoo.net)
or the company's blog, Yodel Anecdotal (yodel.yahoo.com).
Yahoo! is the trademark and/or registered trademark of Yahoo! Inc.
All other names are trademarks and/or registered trademarks of their
respective owners.
Forward Looking Statements
This press release contains forward-looking statements concerning
Yahoo!'s strategic plans, growth opportunities and expected financial
performance. Risks and uncertainties may cause actual results to differ
materially from the results predicted. The potential risks and
uncertainties include, among others, the costs and management
distraction attendant to a proxy contest; the impact of management and
organizational changes; the implementation and results of any strategic
plans as well as Yahoo!'s ongoing strategic and cost initiatives;
Yahoo!'s ability to compete with new or existing competitors; reduction
in spending by, or loss of, advertising customers; the demand by
customers for Yahoo!'s premium services; interruptions or delays in the
provision of Yahoo!'s services; security breaches; acceptance by users
of new products and services; risks related to joint ventures and the
integration of acquisitions; risks related to Yahoo!'s international
operations; failure to manage growth and diversification; adverse
results in litigation, including intellectual property infringement
claims and recent derivative and class actions related to Alipay;
Yahoo!'s ability to protect its intellectual property and the value of
its brands; dependence on key personnel; dependence on third parties for
technology, services, content, and distribution; general economic
conditions and changes in economic conditions; transition and
implementation risks associated with the Search Agreement with Microsoft
Corporation; and risks that the benefits of the Framework Agreement
Yahoo! entered into with Alibaba Group, Softbank Corporation and certain
other parties regarding Alipay may not be realized. All information set
forth in this press release and its attachments is as of April 4, 2012.
Yahoo! does not intend, and undertakes no duty, to update this
information to reflect subsequent events or circumstances. More
information about potential factors that could affect Yahoo!'s business
and financial results is included under the captions "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and Results
of Operations" in Yahoo!'s Annual Report on Form 10-K for the fiscal
year ended December 31, 2011, which is on file with the Securities and
Exchange Commission ("SEC") and available at the SEC's website at www.sec.gov.
Yahoo!, Inc.
Media:
Dana Lengkeek, 408-349-1130
danal@yahoo-inc.com
or
Investor:
Marta
Nichols, 408-349-3382
mnichols@yahoo-inc.com
Source: Yahoo!, Inc.
News Provided by Acquire Media
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