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Wednesday
Apr042012

Yahoo! to Cut 2,000 Employees

Daniel Acker/Bloomberg via Getty Images(SUNNYVALE, Calif.) -- Yahoo! announced on Wednesday its plan to cut approximately 2,000 positions as part of a new restructuring effort aimed at profitability and growth.

In a statement, the company said it will "intensify efforts and redeploy resources globally" in key parts of the business, including "a select group of core businesses, the platforms that support those core businesses, and the data that drives deep personalization for users and ROI for advertisers."

Yahoo! expects the redirected focus will allow it to respond more quickly to customer needs and compete more effectively in areas where it can win.

“Today’s actions are an important next step toward a bold, new Yahoo! -- smaller, nimbler, more profitable and better equipped to innovate as fast as our customers and our industry require," Yahoo! CEO Scott Thompson said.  "We are intensifying our efforts on our core businesses and redeploying resources to our most urgent priorities.  Our goal is to get back to our core purpose -- putting our users and advertisers first -- and we are moving aggressively to achieve that goal."

"Unfortunately, reaching that goal requires the tough decision to eliminate positions.  We deeply value our people and all they’ve contributed to Yahoo!,” Thompson added.

Once all the layoffs are finalized, Yahoo! predicts it will "realize approximately $375 million of annualized savings."

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ABC News Radio