Portal giant Yahoo! has unveiled a sweeping restructuring plan as it attempts to raise its non-ad and marketing revenues from 20% of the total to 50% by 2004.
The group’s forty-four businesses will be consolidated into six operating units, focusing on media, access, listings, commerce, communications and enterprise services. It will discontinue its living section, small business services and e-marketplace, and try to find a partner for its Finance Vision TV business.
In addition, Yahoo! will start charging for services such as job listings and personal and automobile classified ads.
The plan involves 400 layoffs, around 13% of the workforce, mostly from support staff and the international and broadcast units.
Yahoo! expects full-year revenues for 2001 of $688–$708 million, rising to $725m–$785m next year. EBITDA (earnings before interest, taxes, depreciation and amortization) for 2002 is forecast at between $35m and $75m.
News source: Financial Times