Mayer is banking on MaVeNS. (credit: Yahoo)
On Tuesday afternoon, Yahoo’s CEO Marissa Mayer said that the company would be exploring "strategic alternatives” for its Web businesses, including a 15 percent cut in staffing, the closure of five global offices, and potentially divesting "non-strategic assets of value."
The announcement happened before Yahoo’s fourth quarter financial call in which the company reported $4.968 billion in revenue for 2015, an 8 percent year-over-year increase from 2014's revenue. Revenue for Q4 2015 was $1.27 billion. Still, the company reported a hit with a one-time $4.5 billion "goodwill impairment charge" in this final quarter, likely a write down from expensive acquisitions.
The company said that it was in need of simplification measures, saying that "a smaller product portfolio emphasizing Yahoo's core strengths will yield better focus, execution, and ultimately clearer value to shareholders, advertisers, and users." In a press release, Yahoo called out Games and Smart TV as verticals that would be shut down in 2016. In addition, the company said that it would engage in "cost saving efforts" to reduce the number of employees to 9,000 and the number of contractors to 1,000 by the end of 2016. Yahoo also said it would close offices in Dubai, Mexico City, Buenos Aires, Madrid, and Milan within the next three months.
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