New Yahoo CEO sacks 2000 employees to save $375million
Thompson delivered on Wednesday, a payroll purge of about 2,000 workers, or about 14 percent of Yahoo’s 14,100 employees. The cuts will save about $375 million annually as Yahoo tries to boost its earnings and long-slumping stock price.
Thompson is Yahoo’s fourth full-time CEO in less than five years — a period marked by steady declines in revenue, even though more advertising has been shifting to the Internet.
Last year, Yahoo produced revenue of $353,000 per employee while its two biggest rivals, Internet search leader Google Inc. and social networking leader Facebook Inc., each generated $1.2 million per employee.
Other major technology companies were also far more productive: Microsoft Corp. had about $800,000 in revenue per employee last year, while Intel Corp. posted $540,000 in revenue per employee, according to S&P’s data.
Meanwhile, Google and Facebook are hiring even more engineers and sales representative to develop new products and sell more ads. Google added 8,000 employees last year, and Facebook recently moved to sprawling headquarters in Menlo Park, Calif., in anticipation of tripling its current workforce of about 3,200 people within the next few years.