In its latest ‘re-invention’ Yahoo is to cut 15 per cent of its workforce and is looking to shed ‘non strategic’ assets, including online games and Smart TV.
Kenneth Goldman, CFO, said that through sales, closures and efficiency programmes Yahoo plans to reduce its headcount to approximately 9,000 people by the end of 2016 –meaning the loss of 1,590 jobs.
Embattled CEO Marissa Mayer admitted that some investments (since she joined in 2012) have been “essential to Yahoo’s transformation, others have not…. To that end, in Q4 we closed Yahoo Screen and shifted away from original scripted content. In 2016, some of our digital magazines will have their content consolidated under one of our four core verticals, while others will be shut down. We’ll also exit legacy products including Yahoo Games and Smart TV, while we’ll continue to support a handful of higher-margin, higher-engagement legacy products like Flickr.”
Yahoo Smart TV is software that came pre-installed on some TVs to offer an ‘enhanced experience’ with access to interactive on-screen information and exclusive content.
Mayer also announced a $230 million write down on Tumblr, the blogging platform it bought for $1.1 billion in 2013, after Yahoo experienced a “slower ramp in monetisation than we initially expected.”
Overall the company reported a full year net loss of $4.4billion.