Yahoo to explore strategic alternatives, cut 15% of workforce

Yahoo Inc said on Tuesday it was exploring strategic alternatives in addition to the continued pursuit of the reverse spin-off of its internet business.

The company also said it would cut about 15 per cent of its workforce (about 1,700 jobs) and close offices in five locations. Shares of Yahoo, which also reported fourth-quarter results, fell 1.4 per cent in after-hours trading on Tuesday.

The company said it would simplify its product portfolio and that it had begun to explore divesting non-strategic assets.

Yahoo also reported a 15 per cent fall in adjusted quarterly revenue as it struggles to keep its share of online search and display advertising in the face of tough competition from Facebook Inc and Alphabet Inc's Google.

Chief executive Marissa Mayer, who joined Yahoo in 2012 from Google, has been trying to revive the internet pioneer's core media and online advertising business by spending heavily to draw more users to its websites.

Loss of $4.4B US

Mayer proposed in December that Yahoo spin off its main business, which includes its search engine, digital advertising units and its email service, after Yahoo abandoned efforts to sell its stake in Chinese e-commerce giant Alibaba Group Holding Ltd. But the company had provided few details.

The company reported a loss of $4.43 billion US, or $4.70 per share, in the quarter, compared with a net income of $166.3 million, or 17 cents per share, a year earlier.
 
Excluding items, Yahoo earned 13 cents per share, in line with analysts' average expectations.
 
Up to Tuesday's close of $29.06, Yahoo's shares had fallen 35 per cent in the past 12 months. 

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