Just days after an AllThingsD.com's report regarding Yahoo’s CEO planning a companywide restructuring that could see thousands of Yahoo employees laid off, the news has been confirmed.
The restructuring change includes public relations and marketing, research and some of the company's more “marginal businesses” it’s reported.
“As we have indicated, our leadership is engaged in a process that will generate significant strategic change at Yahoo, but final decisions have not yet been made at this point,” a Yahoo! insider wrote in an email following the announcement on AllThingsDigital.com.
The layoffs would be the first big move in the restructuring process since CEO Scott Thompson took over back in January, Reuters said.
Yahoo laid off more than 14,000 employees at the end of 2011. It also has a large number of software contract workers who could also be affected in the shake-up.
Yahoo has yet to release a statement on the reports.
Last week, Prabhakar Raghavan, who was head of Yahoo Labs, ditched those digs to head on over to Google (News - Alert).
Word on the street is that Raghavan, whose expertise in algorithm design, will be working for the Yahoo rival, although what he will be doing hasn’t been specified. AllthingsD broke the news and hints that Yahoo might be planning cuts in that area.
“Yahoo thanks Prabhakar Raghavan for his dedication and contributions to Yahoo for the past seven years,” said Yahoo in a statement. “We wish him well in his next endeavor. Ash Munshi, chief technology officer, will oversee Yahoo Labs.”
The restructuring news came in the wake of a “shake-up” of the 17-year-old firm's board of directors.