Yahoo has decide to cut 2000 staff from the company because it wanted to reshape itself for the future. This action showed that Yahoo wanted to refocus on a select group of core businesses. Yahoo CEO Scott Thompson said the company's objective would be aiming at delivering highly personalised services to users and advertisers.
"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 positions."
Thompson thought Yahoo would become much more efficient and profitable than before. Customers and their industry would be more satisfied with the current Yahoo.
Rumors of hefty job losses at the firm have been circulating since Thompson took control of the company in January.
The company wanted to save $375 million a year as a result of job cutting, but do you think this was a good idea?
I personally don't think this was a good idea because rumors of hefty job losses can create a very bad working environment. Everybody would worry about their job---can I keep it, and how long? This could actually decrease company's productivity. Cutting staff, of course, can help to save money, but the expenses(decreasing of company's productivity) are too big. What do you think?