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Yahoo confirms restructuring plans after Q4 loss

2016-02-03 08:35:00| Telecompaper Headlines

(Telecompaper) Yahoo! announced plans to narrow its focus and work to improve its revenues and profitability, after reporting a net loss for the last quarter of 2015. In 2016, the company will prioritize growing engagement with its user base and simplify its product portfolio to emphasize those products that distinguish the company competitively and drive the most substantial portion of users and revenue. Yahoo will continue to invest in its Mavens strategy (mobile, video, native and social) to grow sales from these areas to USD 1.8 billion this year from USD 1.6 billion in 2016. On the cost side, the company targets reductions in operating expenses of over USD 400 million by the end of 2016. This will include cutting its workforce by roughly 15 percent and closing offices in Dubai, Mexico City, Buenos Aires, Madrid and Milan. The impact on revenue from the product simiplification and office closures is expected to be limited to USD 100 million, while the cost cuts are expected to push EBITDA to an annual run rate of USD 1 billion by the second half of 2016, compared to USD 952 million in 2015. Yahoo! will also look at selling non-strategic assets, which could generate over USD 1 billion in cash, the company said. 

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