Yahoo’s newest CEO, Scott Thompson, announced today the laying off of 2000 employees. According to Thompson, the layoffs will save Yahoo $375 million a year. Hrmmm, we think we see part of the reason that Yahoo is losing so much money.
If the 2000 lay offs will save Yahoo $375 million a year, that means that the average compensation package of each of the 2000 people being laid off was $187,500 a year.
Who do they think they are, Goldman Sachs?
The move, said Thompson, in an email to Yahoo staff, will allow Yahoo to compete and “win in our core business.”
In an e-mail to Yahoo employees, CEO Scott Thompson says the moves announced today “will put our customers first, allow us to move fast, and to get stuff done.”
The Internet Patrol is completely free, and reader-supported. Your tips via CashApp, Venmo, or Paypal are appreciated! Receipts will come from ISIPP.
CashApp us
Venmo us
Paypal us
Here is the email that Thompson sent out today, announcing the lay-offs:
Yahoos –
Today we are restructuring Yahoo! to give ourselves the opportunity to compete and win in our core business. The changes we’re announcing today will put our customers first, allow us to move fast, and to get stuff done. The outcome of these changes will be a smaller, nimbler, more profitable Yahoo! better equipped to innovate as fast as our customers and our industry require.
Over the last 60 days, we’ve fundamentally re-thought every part of our business and we will continue to actively consider all options that allow Yahoo! to put maximum effort where we can succeed. As part of this process, I believe we have to focus to win in a select group of core businesses globally:
– Core Media and Communications: Our content, media, and communications experiences must be best in class. That includes getting today’s core properties right and innovating on a next generation of great product experiences across all screens.
– Platforms: We must make our core platforms and systems a genuine strength for Yahoo! – platforms that we can really leverage to support our massive scale, drive the deepest personalization, and boost speed to market.
– Data: Our massive data sets must become a genuine competitive advantage for Yahoo!. We have to unlock the value in our data to allow us to really understand our 700 million users, encourage and win their engagement and trust, leverage everything they do with us to more fully personalize their experiences, and to give our advertisers the immediate insights they are rightfully demanding.
We are intensifying our efforts on our core businesses and redeploying resources to our most urgent priorities. Our goal is to get back to our core purpose – putting our users and advertisers first – and we are moving aggressively to achieve that goal.
Unfortunately, reaching that goal requires the tough decision to eliminate jobs, which means losing colleagues and parting with friends. Today, we will begin the process of informing employees about these changes. As part of that effort, approximately 2,000 people will be notified of job elimination or a phased transition. We value our people and for those who will be leaving, we thank you for all you have contributed to Yahoo!. We will treat all of our people with dignity and respect, providing resources to help manage through their transition.
Change is never easy. But the time has come to move Yahoo! forward aggressively with increased focus and accountability. Our values have always been about treating all Yahoos with dignity and respect, and today is a day to embrace those values. This is an amazing company with exceptionally talented people and I know we will all do our best to encourage each other through this difficult period of transition.
Scott
The Internet Patrol is completely free, and reader-supported. Your tips via CashApp, Venmo, or Paypal are appreciated! Receipts will come from ISIPP.
CashApp us
Venmo us
Paypal us
That figure is not a surprise at all. In many large companies the benefit plus overhead costs are higher than the salaries.
This is a good thing–it means Yahoo actually compensates its employees well.