AllThingsD is reporting that Yahoo’s new CEO Scott Thompson planning a massive restructuring of the company that could result in “layoffs that are likely to number in the thousands.”
The restructuring, which could be announced by the end of the month, “is being aimed at Yahoo’s large products organization, as well as other arenas in which the company has lagged in,” Kara Swisher of AllThingsD reports, citing multiple sources inside and outside Yahoo.
Yahoo, which partners with Microsoft on Internet search and advertising, has been going through some tumultuous years. After spurning Microsoft’s $48 billion takeover bid in 2008, Yahoo’s chief executive and co-founder Jerry Yang was replaced by CEO Carol Bartz. Bartz herself was fired in September, the Yahoo board hired new CEO Scott Thompson in January, and Yang — along with four other board members — resigned from the board at the beginning of the year.
The company has been struggling to increase its advertising revenue and regain its footing. It’s been slipping in the U.S. search engine rankings, falling behind Microsoft’s Bing for the first time in December. And the partnership with Microsoft — in which Bing powers Yahoo’s searches, Yahoo sells premium ads for both, and the two share search revenue — hasn’t lived up to expectations.
UPDATE 12:46 p.m.: Yahoo, which has 14,100 employees globally, issued the following statement: “As we have indicated, our leadership is engaged in a process that will generate significant strategic change at Yahoo, but final decisions have not yet been made at this point. Beyond that, we will not comment.”