Activist investor, Starboard Value LP, have targeted Yahoo Inc to cut its ‘bloated’ cost structure. A Wall Street Journal report cited a person with knowledge of the plan to implement cost cutting in the tech company.
In response to the investor, it is anticipated that Yahoo will reveal both cutbacks and possible acquisitions in an effort to streamline the business.
Key points to Yahoo’s plan:
Reduction in the size of its operation in Bangalore, India where Yahoo’s largest engineering facility outside of California is located.
Closure of the Yahoo Jordan office.
Either closing foreign offices or amalgamating workers to California headquarters.
Starboard Value LP also called for Yahoo to ‘monetise’ the Asian assets it gained from the Alibaba Group Holding Ltd IPO. Hence the prediction of Yahoo acquiring a large tech start-up with the $5.8 billion funding secured in the Asian market.
Confirmation from Yahoo CEO, Marissa Mayer, is expected as soon as Tuesday this week.
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