Cuts will be mostly in its product group; offers severance packages and outplacement services
Yahoo said that it will lay off about 600 employees, which accounts to 4% of its workforce, to revive its revenue growth with adjustments in its operations.
Yahoo spokesperson Kim Rubey was quoted by Reuters as saying that the cuts will be mostly in its product group, and the company started notifying them.
The company in a statement said that it will continue its global hiring to support key priorities.
Reuters reported that in the tenure of chief executive Carol Bartz, who joined Yahoo in January 2009, profit margins have increased, but revenue growth has stalled and page views at Yahoo’s network of websites declined 4% year-over-year in the third quarter.
The Web portal is facing increasing competition from Google and social networking site Facebook.
Analyst have indicated that Yahoo’s sales of premium online ad space is reeling under pressure from a new generation of online advertising exchanges.
Yahoo said in the statement it is offering severance packages and outplacement services to the affected employees.
As part of a 10-year partnership with Microsoft, Yahoo recently began using Microsoft back-end technology to power its Web search service, and certain employees from Yahoo were transferred to Microsoft.
According to company’s website, 14,100 people were employed as of the end of September 2010.