Quick Quiz: If the CEO of your company said, “We are preparing to seek ‘strategic alternatives,'” what would be your initial reaction? If you answered, “Sweat buckets of blood and immediately call a temp agency,” you win.
Unfortunately, 15 percent of Yahoo employees are going through that horrible feeling now, thanks to Marissa Mayer announcing that more than 1,700 pink slips are about to be issued.
Yahoo swung to a steep loss of $4.43 billion, or $4.70 a share, in the fourth quarter. However, Yahoo reported $1.27 in revenue, up an inconsequential 1.58 percent from last year. Nonetheless, stock in the fledgling Internet pioneer has fallen 13 percent. This year.
In fact, Charles Schwab resigned as a director, reducing the board to seven members. Yes, the Charles Schwab, Jr.
“We believe a simplified Yahoo will increase shareholder value over the long term,” said CEO Marissa Mayer during a conference call Tuesday. “Having fewer products means we can improve those products faster and increase profitability and focus.”
The formerly considered ‘Alphanista‘ is on a mission to cut $400 million amid this trek to simplification. Her goal: by the end of 2016, 9,000 employees will be on the roster, with fewer than 1,000 contractors, down from closer to 12,000 last year.
It will also “explore” the sale of non-strategic assets, including real estate, that could raise $1 billion in cash.
If you ran PR for Yahoo, what would you do to make Mayer poised to even think of reaching the halcyon days of the 1990s?
If you answered go back in time and force Larry Page and Sergey Brin to consider a career path in sanitation engineering or franchising with Subway, you win.