These days, “Google it” is pretty much a household term. The search engine giant has a huge influence on the internet, and is used by most people on a daily basis. Yahoo, one of Google’s biggest rivals, on the other hand, hasn’t been doing so well. Getting dwarfed by Google, Yahoo has been dying a slow death, but the company’s Chief Executive Officer, Marissa Mayer, isn’t about to let it go down without a fight.
In 2012, Mayer was introduced as Yahoo’s new CEO, announcing her mission “to grow and to help redefine one of the Internet’s most beloved companies.” Unfortunately for both Mayer and Yahoo, that growth didn’t happen.
Over the past few years, Yahoo’s expenses have continued to rise, while their revenue has decreased, and you don’t have to be a business major to know that that is a bad thing. During the first nine months of 2015, the company’s operating expenses made a 20% increase over the same time period from the previous year, while the revenue(excluding commissions paid to search partners) decreased by 4%.
Despite the dismal numbers, Marissa Mayer plans to keep fighting for the company. She is expected to unveil details of her plans to save Yahoo on Tuesday, but some of her ideas have already been revealed. Mayer’s plans involve downsizing the company and narrowing its focus in hopes of finding a more profitable route for Yahoo.
Along with the Chief Financial Officer, Ken Goldmen, Mayer is expected to announce details regarding a plan to drastically reduce costs for the Internet company, which will include closing down several business units and laying off as much as 15% of the Yahoo workforce, according to the Wall Street Journal.
Marissa Mayer hopes to buy time with investors with her actions, allowing Yahoo a chance to make their case against the upcoming proxy battle with Starboard Value LP. Starboard has already demanded major changes and is calling for new management and a sale of the business. The activist hedge fund group is further threatening to nominate a slate of directors, giving March 26th as a deadline for proxy proposals.
Whether this will be enough to rescue Yahoo before it’s too late remains to be seen.
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