Yahoo announced the closing down of its two offices in two Latin American regions.
Yahoo Inc. is recently struggling to save its business. Regardless of the fact that the business has already died, it is hanging in between saving its future, selling its core internet business, or selling off its Asian assets in the coming times. The internet company as well as the leader, Marissa Mayers, is under immense pressure from the investors and shareholders to come up to a conclusion. The activist investors, Starboard Value LP and Canyon Capital Advisors, are pushing the board of directors to sell the core business as well as separate Asian assets from its business.
As it is known people tend to make hasty decision under pressure, the CEO of Yahoo Marissa Mayers have announced to shut down operations in the Argentinean and Mexican regions immediately. Sources suggest that the company will be closing down its offices in Argentina and Mexico as a part of cost cutting strategy. This is not the first time, Yahoo previously opted for this strategy as well in which it closed down offices in the gulf areas specifically Dubai.
Financial Post reported that Yahoo will close down two offices in Latin America in order to save costs through scaling back some international operations and projects. The search engine giant issued a statement on Thursday that it will be operational in Brazil and Florida. The company has not yet disclosed whether how many people will lose jobs due to this decision. Indirectly it mentioned that both of the offices in Argentina and Mexico were small.
A California based company, Sunnyvale said “Yahoo is focused on maximizing growth. Latin America is an important region for Yahoo and we will continue to invest in the people and products there.”
It has been more than three years now since the company started to revive its business and business growth in the market. It was once known as the market leader which took the industry by storm with its services. Regardless of so many efforts made over the years, sales of the company remain in a slump. And this is mounting more pressure on the current CEO, Marissa Mayers, and her management team.
Starboard Value actually, but indirectly, wrote in a letter that Yahoo should let go of its CEO and the management team as it was tired to see the company struggling under her management. The investment and financial firm wrote that a person who cannot change the future in a long time should not be kept in charge. Yahoo did not respond to the letter but made an announcement that the board of directors is satisfied with the performance of Marissa Mayers.
Sources familiar to the matter reported that Ms. Mayers is expected to announce a new streamline in the coming times that will set the operations of Yahoo by next week. This announcement would surely include laying off of jobs in order to lower costs.
The search engine giant will be reporting its fiscal fourth quarter earnings on February 2. According to analysts, it will be another same quarter for the company. Analysts estimated that the revenue minus sales have passed on to partners declined 20 percent to US $948.2 million.
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