Yahoo to outline cost-cutting plans - source
SAN FRANCISCO |
SAN FRANCISCO Oct 19 (Reuters) - Yahoo Inc (YHOO.O) is expected to outline plans to cut expenses, which would include future job cuts, when it reports its quarterly earnings on Tuesday, a source familiar with the situation said on Sunday.
The Internet company will discuss the scale and timing of the future layoffs, but specific details on the exact jobs to be eliminated will not be disclosed, the source said.
Yahoo was not immediately available to comment.
The Wall Street Journal reported that the future layoffs will exceed the 1,000 jobs Yahoo previously said it would eliminate.
Some Yahoo managers have also been asked to identify operating budget cuts of around 15 percent, The Wall Street Journal reported in its electronic edition.
Earlier this year, Yahoo rebuffed a $33 per share, or $47.5 billion, takeover offer by Microsoft Corp (MSFT.O). Since then, Yahoo has shuffled its management team and announced new products to try to boost its flagging stock price. Yahoo recently hired consultants Bain & Co. to help identify potential "structural changes."
Shares of Yahoo closed on Friday at $12.90, down 9 cents, on Nasdaq.
Yahoo also continues to weigh a combination with Time Warner Inc.'s AOL, The Wall Street Journal reported. The two sides have started to discuss a value for AOL below the $8 billion to $10 billion that had previously been considered.
Last week, Microsoft Chief Executive Steve Ballmer said a Web-search advertising deal with Yahoo Inc (YHOO.O) made economic sense and may still be possible, though the two sides are not in any discussions. (Reporting by Eric Auchard in San Francisco, writing by Jessica Hall in Philadelphia; Editing by Ben Tan) (For more M&A news and our DealZone blog, go to here)
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