|Yahoo! Headquarters in Sunnyvale, California|
Yahoo CEO Scott Thompson - who joined the company in January with a guaranteed $27 million annual compensation package set to increase by at least $1 million annually - has announced his first big move at the Silicon Valley internet company: he's laying off 2,000 employees, or 14% of the total workforce.
This round of cuts comes about three months after Thompson inked his multimillion compensation package. Citigroup analyst Mark Mahaney - not exactly someone to regularly call attention to excessive executive pay - pegged the amount as "unusually high."
Although Thompson promised "a bold, new Yahoo" in a written statement this morning, he's resorting to a tired - and not very effective - tactic to try to achieve that goal: this will be the company's sixth mass layoff in four years, and the deepest one to-date. He's the third CEO during that time period to unsuccessfully try to grow the company's revenues by slashing jobs:
February 2008 - 1,000 jobs (under founder and former CEO Jerry Yang)
December 2008 - 1,500 jobs (under Yang)
April 2009 - 700 jobs (under former CEO Carol Bartz)
December 2010 - 600 jobs (under Bartz)
April 2011 - 100 to 150 jobs (under Bartz)
April 2012 - 2,000 jobs (under Thompson)
|Yahoo CEO Scott Thompson|