Yahoo planning to cut 10% of its workforce

Yahoo Inc. is planning to cut 10% of its overall workforce and it could begin the process in January, according to a report from Business Insider. 

“We are not confirming this rumor or commenting further”, Sarah Meron, a spokeswoman for Yahoo told Reuters on Thursday in an e-mail.

If the news is accurate it would result in more than 1,000 employees losing their jobs at the former tech darling.

The layoffs are reportedly going to affect Yahoo’s media business, European operations, and platforms-technology group, Business Insider says.

Yahoo has come under a lot of pressure in recent months, leading to an angry letter from activist investor and hedge fund, Starboard Value, which earlier in the week called for Yahoo’s board to fire Chief Executive Officer Marissa Mayer.

Starboard implied that Mayer and her officers needed to go, without naming her specifically.

The activist investor also threatened to shake up the board if Yahoo’s stock continued to suffer.

In December, Yahoo shelved plans to spin off its Alibaba stake and said it would create a separate company that would house Yahoo’s Internet business and its stake in Yahoo Japan.