Yahoo CEO Marissa Mayer just provided more details on what parts of its business will be gone in relation to its plan to cut costs and return to growth.
Stressing that the main growth driver will be the so-calledMavens businesses — mobile, video, native, and social — which generated $1.6 billion last year, Mayer said it will shut down legacy products like Yahoo Games and Smart TV products while consolidating some of its Digital Magazine initiatives.
“In 2016, Yahoo will consolidate some Digital Magazines under one of our four core verticals, while others will be shut down. The company will also exit legacy products, including Games and Smart TV, which have not met growth expectations,” Mayer said during the earnings call.
“A simpler product portfolio more focused on Yahoo’s strengths will allow the company to more quickly improve offerings to increase profitability,” she added.
In addition to these closures, Yahoo disclosed in its earnings release that it will cut 15% of its workforce and shut down five overseas offices, including Dubai, United Arab Emirates, and Madrid. Plus, it plans to sell some of its nonstrategic patents and real-estate holdings, which will generate over $1 billion. Yahoo says that the planned layoffs will save the company about $400 million annually.
Mayer was also surprisingly blunt about the press reports that portrayed Yahoo as a lavish spending company, including allegedly more than $7 million on holiday parties and hundreds of millions on free food.
Mayer said, adding that the “$7 million holiday party” was actually less than one-third of that price to throw:
Recently, there have been gross mischaracterizations and untruths spread about Yahoo. With many inaccuracies purported to be fact, it’s important for us to continue to set the record straight … please know we are very thoughtful about how we spend company resources and we will continue to be.
As reported by Business Insider