It is time for Yahoo to stage their layoffs as a part of planned restructuring. The company intending to get back on its business track is working on a ten percent layoff. This layoff in Yahoo would reduce the headcount by thousand. The termination is expected to disturb all operations of the company. However, the European operations of Yahoo are going to be the worst hit. However, information from one of the trusted sources reveals that the company is planning for a layoff in this quarter regardless of future operational disturbances. The company has also been facing several criticisms from activists.

The company in its reply to the criticism mentioned the additional plans undertaken to develop a more focused Yahoo. The company’s directors also spoke about the inevitable pressure that came on after the failure of a three-year turnaround. It is important to identify a promising path forward to invigorate the business. As per the employees stand, they were expecting a layoff since when Yahoo leased on McKinsey & Co. in the month of November. Both Yahoo and McKinsey & Co together decided the reorganization strategy. As per the sources, the impending focus on digital magazines is the prime factor associated with Yahoo’s reorganization.

The company has closed the Yahoo screen and its comprehensive video hub to focus on digital magazines. Conversely, the magazine section has still not received a functional budget to carry its activities forward. To save more money the company has involved itself in scaling back operations at their production units. The layoff is also planned ahead to avoid the payment of annual bonuses. In the meantime, the company has also purchased a huge area of land around the Silicon Valley headquarters. All these inputs put together highlights the company’s media reorganization. However, the future of Yahoo is yet to be disclosed with time.

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