Business

Yahoo!’s staff cuts lambasted by Loeb

Yahoo! is cutting to the core.

The struggling Internet brand laid off 2,000 workers, or 14 percent of its staff, but didn’t satisfy its agitating shareholder Dan Loeb, who criticized the cuts for not coming with a clear strategy.

The cost-saving staff reductions were deemed necessary by new Chief Executive Scott Thompson, who is heading a strategic reorganization of the company.

“[These] 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,” Thompson said in a statement.

“We are intensifying our efforts on our core businesses and redeploying resources to our most urgent priorities.”

Other details about the strategy are to be revealed April 17 when first-quarter results are due to be reported.

Loeb, the largest outside shareholder fighting to control four seats on the board, responded with more criticism, saying he is “disappointed that this round of cuts occurred before [Thompson] has articulated his strategic plan.”

Thompson is approaching 100 days on the job. Yahoo! has been in a state of strategic review since firing former boss Carol Bartz in September.

The layoffs were expected to save Yahoo! more than $300 million a year. Shares rose 9 cents to $15.27 yesterday; they are off 5.3 percent year to date.