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Re/code's Chinese site reported on February 12 that, according to multiple sources, Yahoo has begun laying off employees starting from the 9th. Currently, all of Yahoo’s conference rooms have been reserved for informing staff about their dismissals.
According to insiders, this round of layoffs is not only significant in scale but also widespread across departments. Up to 15% of the workforce may be affected under CEO Marissa Mayer, which could mean over 1,500 job cuts. The media and sales divisions are particularly hard-hit.
Interestingly, most employees in Yahoo’s search department were spared in this round. Mayer reportedly believes this segment still holds growth potential. However, her strategy has taken a sharp turn recently, leading to more confusion than clarity. Critics say her decisions are like a snake biting its own tail — creating more problems without real solutions.
Amid growing investor concerns, including the looming proxy battle, Mayer and the board seem to be at odds. During last week’s earnings call, directors publicly expressed openness to selling Yahoo’s core business — something Mayer had been trying to address for years. But it appears her approach is causing more complications than progress.
Kara Swisher, co-founder of Re/code, once quipped that Mayer came from Mars while the board came from Venus. Internal and external sources suggest Mayer has made the sale process difficult, including failing to provide key due diligence information. One potential buyer even said, “Meyer didn’t return our calls.â€
Yahoo is currently being considered by several major players, such as Verizon, AT&T, private equity firms, and News Corp. However, Mayer has been reluctant to engage directly with these parties. She claimed that the sale negotiations were handled by independent directors, which many believe is misleading. In reality, the CEO’s involvement is critical for any deal to move forward.
Mayer’s decisions have left many confused, especially regarding the recent layoffs. She created an unclear “investment/retention/cut†list for various business units, causing internal uncertainty. These missteps are seen as opportunities for activist investors like Star Smith Value, led by Jeff Smith, who has been pushing for a board seat. If successful, this could lead to Mayer’s departure.
With tensions rising and strategic moves becoming more erratic, Yahoo’s future looks increasingly uncertain.
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