(Reuters) – Yahoo Inc is working on a plan to cut its workforce by at least 10 percent & it could start the process as early as this month, Business Insider reported, citing sources.
"We are not confirming this rumor or commenting further", Sarah Meron, a spokeswoman for Yahoo told Reuters on Thursday in an e-mail.
The layoffs, which would result in more than 1,000 people leaving the tech giant, is set to affect Yahoo's media business, European operations, & platforms-technology group, Business Insider said on Wednesday.(read.bi/1ZawbOm)
p> This move follows activist investor Starboard Value LP's letter to Yahoo on Wednesday ramping up pressure on Yahoo, taking aim at Chief Executive Officer Marissa Mayer & her leadership team & raising the prospect that a proxy battle is approaching.
Starboard implied that Mayer & her officers needed to go, without naming her specifically.
The activist investor moreover threatened to shake up the board if Yahoo's stock continued to suffer.
Yahoo spokeswoman Rebecca Neufeld said the company will provide more details on its turnaround plan prior to its fourth quarter earnings call after this month.
Starboard, which owns approximately 0.75 percent of Yahoo, has been pushing for changes at the Internet company since 2014, urging it to separate its Asian assets & auction off the core business.
The investor, together with other shareholders, has demanded Yahoo separate the Asian assets, including stakes in Chinese e-commerce company Alibaba Group Holding Ltd & Yahoo Japan Corp <4689.T>, & conduct an immediate public auction of the core business, including search & advertising businesses.
But Yahoo is resisting, instead pursuing a tax-free spinoff of the core business, which could take at least a year.
Yahoo had appointed management consulting firm McKinsey & Co, in November, to assist with the reorganization of its core businesses.
The company moreover had plans to make huge changes to its media unit, restructuring & consolidating it, including making cuts & shuttering some efforts.
In December, Yahoo shelved plans to spin off the Alibaba stake & said it would create a separate company that would house Yahoo's Internet business & its stake in Yahoo Japan.
(Reporting by Sneha Teresa Johny in Bengaluru; Editing by Sunil Nair)
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