Thu, Apr 19, 2012 - Page 10 News List

Yahoo to dump products, workers in bid for glory

AFP, SAN FRANCISCO

Yahoo Inc is dumping products along with workers in a quest to return the faded Internet star to glory.

Yahoo boss Scott Thompson announced the move on Tuesday while mapping out the company’s turnaround on the heels of an unusually upbeat quarter in which profits climbed 28 percent.

It was the first time since 2008 that Yahoo saw its revenues rise in a year-on-year comparison of financial quarters.

“Yahoo has been doing way too much for way too long, and was only doing a few things really well,” Thompson said during an earnings call.

“We need to be clearer going forward about what we won’t do,” Thompson said.

Yahoo is to shut down or consolidate 50 products that do not “contribute meaningfully” to revenues, the chief executive said.

The company will focus on online venues such as News, Finance, Sports and Yahoo Mail, that attract the most users and advertisers.

Yahoo reported net income of US$286 million on revenue just shy of US$1.08 billion in the first three months of this year.

Yahoo shares jumped more than 2 percent on the news, hitting US$15.44 in after-market trade.

“In the first quarter, Yahoo’s results ... beat consensus on revenue and profits,” Thompson said. “We also made changes to resize the organization and establish a new leadership structure, to quickly deliver the best user and advertiser experiences at scale.”

Earlier this month, Yahoo said it would slash about 2,000 jobs in a purge aimed at transforming it into a “smaller, nimbler, more profitable” company.

The 17-year-old company based in Sunnyvale, California, had more than 14,000 employees at the end of last year.

Thompson took the helm in January promising to turn the company around after a year of falling income.

“We had way too many people for the amount of output for this business,” Thompson said. “A streamlined Yahoo will help us get things done at the pace required.”

This story has been viewed 1887 times.
TOP top