Yahoo announced a new cut of employement after early February layoff its 15,00 employees. As the former Internet giant wil shut down its some of online magazines, around 300 employees in California offices will lose their jobs.
This job cut is a part of the plan to reduce its global workforce by 15%. It is expected 1,600 employees will be losing their jobs by the end of this year. On Wednesday, the company announced to layoff 128 employees in Sunnyvale, 46 employees in San Francisco and 60 in Los Angeles. Also 90 employees in Burbank office will be losing their job because the company plans to shutdown its office there.
Yahoo also reported the closure of seven digital magazines The company has toiled to gain audience for its magazine, and failed to attract Millenials attention. While it has spent much money to recruit prominent name such as tech columnist David Pogue, tech correspondent for CBS News Sunday Morning and columnist for Scientific American.
A professor at the USC Annenberg School for Communication and Journalism Gabriel Kahn told San Fransisco Gate about Yahoo's miscalculation, "The economics just don't support that in the digital space."
In regards to shut down seven of its digital magazine, the company wrote in a blog post as quoted by Tech Crunch, "On our recent earnings call, Yahoo outlined out a plan to simplify our business and focus our effort on our four most successful content areas – News, Sports, Finance and Lifestyle. To that end, today we will begin phasing out the following Digital Magazines: Yahoo Food, Yahoo Health, Yahoo Parenting, Yahoo Makers, Yahoo Travel, Yahoo Autos and Yahoo Real Estate."
Yahoo global editor-in-chief Martha Nelson explained the company's next plan as quoted by San Fransisco Business Journal, "While these digital magazines will no longer be published, you will continue to find the topics they covered, as well as style, celebrity, entertainment, politics, tech and much more across our network."
When Marissa Mayer, took helm of Yahoo in 2012, there were hopes that she could turn the company as a primarily mobile-driven company centered around a portfolio of brands. In the end, CEO Mayer was expected to return the name of Yahoo to a powerhouse brand in the Internet,
However, a continuing failure, including massive exodus of executives and top management under her leadership showed otherwise. According to Tech Crunch, all this is a signal that the strategy in place has not worked.
With another round of layoffs, Yahoo expects to streamline its process. As the company wil layoff its 15% of global workforce. Nevertheless, what Yahoo needs right now is a strong sense of direction, to return its name as an Internet powerhouse.
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