Yahoo has announced what it calls an "aggressive strategic plan" which will see the company narrow its focus to areas it perceives itself to be strong in. The company hopes this will "fuel growth, drive and increase revenue", unfortunately for workers at Yahoo, the plan will also see current jobs being cut by 15%.
With her new plan, Marissa Mayer - CEO of Yahoo - wants to focus on Search, Mail and Tumblr as well as News, Sports, Finance and Lifestyle in 'growth markets' such as the US, Canada, UK, Germany, Hong Kong, and Taiwan. By focusing on these things, the company believes in can innovate in these areas more rapidly, making them more attractive to users. Regarding advertising, the company will 'be defined' by its two core offerings: Gemini and BrightRoll.
The new plan will see Yahoo's search business and Tumblr platform, become further oriented towards mobile users. By investing in 'forward-leaning mobile search', Yahoo hopes to redefine search on mobile devices, which they say will drive sustainable long-term growth. As for Yahoo Mail, the focus is on improving speed and stability, as well as making it easier for users to share, search and connect through the platform.
Due to the re-focusing on core business products, Yahoo will stop providing some services and products such as 'Games' and 'Smart TV'. Unfortunately, the changes will see the company shed 15% of its workforce. The company will exit five offices in Dubai, Mexico City, Buenos Aires, Madrid and Milan. Most of the changes outlined are planned to occur during Q1, but will have definitely been made by the end of the year.
Once the latest round of cuts have been made, Yahoo will have seen a 42% reduction in its workforce since 2012. The savings from the cuts are expected to be around $400 million annually in the short term. The company hopes that the plan will see modest and accelerating growth in 2017 and 2018.