Yahoo to close offices in five cities, reduce workforce by 15%

February 3, 2016 12:15 pm 

WASHINGTON, Feb. 3 — The US multinational technology company Yahoo said in a press release that it will lay off a portion of its workforce in the first quarter of 2016 and shut down five offices in foreign countries.

According to the press release, Yahoo’s quarterly revenue has fallen by 15 percent and the company expects to have about 9,000 employees and fewer than 1,000 contractors by the end of 2016.

"Yahoo plans to reduce our workforce by roughly 15 percent and exit five offices in Dubai, Mexico City, Buenos Aires, Madrid and Milan, subject to local laws and consultation processes," the press release stated on Tuesday.

The press release added that the layoffs are a part of the plan to "simplify the company" and narrow its focus.

The main goals of the plan to reduce its workforce are improving profitability, growing user engagement, yielding better execution and reducing operating expenses by more than USD400 million by the end of 2016, according to the press release.

"As a result of this four-point plan, Yahoo is expected to return to modest and accelerating growth in 2017 and 2018," the company said. (PNA/Sputnik)

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