Yahoo restructuring is biggest yet, radical steps needed, analysts say |
| Los Angeles Times - Apr 4, 2012 |
Yahoo Inc.'s decision to slash 14% of its workers is the biggest restructuring in the company's history, an analyst said.
About 2,000 workers will be laid off, the Sunnyvale, Calif., company said Wednesday. It expects to record a pretax expense of $125 million to $145 million, most of which will come in the second quarter.
"It may be the only way CEO [Scott] Thompson can effectively focus on the next generation of Yahoo," Think Equity analyst Ronald Josey said in an research note.
He added: "While we believe today's actions should improve overall operating margins -- which we project to fall to 450 bps in 1Q12 to 13.3% given increased investments -- we are more focused on revenue growth which has proven elusive and has declined every year since 2009 given increased competition and share losses in the domestic display market."
Read Full Article from Los Angeles Times
- Posted: 2012-04-04 12:33:41
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