Yahoo announced that it was eliminating 2,000 jobs this morning–more than 14 percent of the company’s 14,000 employees.
“Today’s actions are an important next step toward a bold, new Yahoo! — smaller, nimbler, more profitable and better equipped to innovate as fast as our customers and our industry require,” Yahoo CEO Scott Thompson said in a statement. “Unfortunately, reaching that goal requires the tough decision to eliminate positions.”
AllThingsD, which broke news of the cuts last night, says the carnage most likely isn’t over. According to the site’s Kara Swisher, this brutal round of cuts “is just the tip of the proverbial iceberg that will hit the storied Silicon Valley Internet giant in the months to come.” Swisher says the axe will come down hardest on Yahoo’s ad tech and search businesses, while the company may look to expand in other regions in the near future.
Given the company’s very public emphasis on content creation over the past few months, it sure looks like Yahoo is abandoning its Silicon Valley origins and going Hollywood. The site can’t compete with Google in terms of innovation, but it still has a massive user base. They’re obviously doubling down on the hope they can land premium ad bucks if they can get people watching some decent original programming,