Yahoo to lay off 1,700 workers

Associated Press

SAN FRANCISCO

Yahoo is laying off about 1,700 employees and shedding some of its excess baggage in a shake-up likely to determine whether CEO Marissa Mayer can save her own job.

The long-anticipated purge, announced Tuesday, will jettison about 15 percent of Yahoo’s workforce along with an assortment of services that Mayer decided aren’t worth the time and money that the Internet company has been putting into them.

Mayer hopes to sell some of Yahoo’s unwanted services for about $1 billion, though she didn’t identify which ones. In an apparent concession to some shareholders, Mayer also said Yahoo’s board will mull “strategic alternatives” that could result in the sale of all the company’s Internet operations. Analysts have speculated that Verizon, AT&T and Comcast might be interested in buying Yahoo’s main business, despite years of deterioration.

Mayer expressed confidence that her plan to run Yahoo as a smaller, more focused company “will dramatically brighten our future and improve our competitiveness, and attractiveness to users, advertisers and partners.”

This cost-cutting overhaul might be Mayer’s last chance to persuade restless shareholders that she has figured out how to revive the Internet company’s growth after 31/2 years of futility.