Yahoo Could Lay Off 10 Percent of Its Workforce, Report Says

(Los Angeles Times/TNS) -

Yahoo is planning to cut at least 10 percent of its workforce as part of a reorganization aimed at stemming the turmoil at the internet company, a report says.

Over 1,000 employees could be let go as early as this month, unnamed sources told Business Insider.

The cuts would be companywide, but Yahoo’s media business, European operations and platform technology group could take the brunt of the layoffs, the report said.

Yahoo declined to comment.

The news comes a day after hedge fund investor and Yahoo shareholder Starboard called for a shakeup in Yahoo management, including a replacement for embattled Chief Executive Marissa Mayer.

“To be successful, dramatically different thinking is required, together with significant changes across all aspects of the business starting at the board level, and including executive leadership,” Starboard said in a letter to Yahoo released Wednesday.

The calls for change come after a three-year plan to reverse the company’s fortunes have failed to produce results.

Yahoo shares have lost about 40 percent of their value in the past 12 months. They fell about 3.6 percent to $30.99 apiece Thursday morning.

In response to Starboard, Yahoo released a statement Wednesday saying the company was still in the middle of a “multi-year transformation.”

“We will share additional plans for a more focused Yahoo on or before our fourth quarter earnings call,” the company said in the statement. “Our board and management team engage in and maintain regular, open dialogue with all our shareholders, and consistently strive to deliver and to maximize shareholder value.”