After announcing plans to lay off some 2,000 employees earlier this month, Yahoo has now confirmed that it will be closing or consolidating fifty of its sites, as well as part of its restructuring plan. “Yahoo has been doing way too much for way too long and was only doing a few things really well,” company’s CEO Thompson said during an earnings call. “We need to be clearer going forward about what we won’t do.” Yahoo will shut down or consolidate 50 products that don’t “contribute meaningfully” to revenue, according to the Thompson.
“We had way too many people for the amount of output for this business,” Thompson said. “A streamlined Yahoo will help us get things done at the pace required. The Yahoo share of US online ad revenues sank to 9.5 percent last year from 15.7 percent in 2009 and will drop further this year, according to eMarketer. “It seems like (Thompson) will take the best parts of old Yahoo and new Yahoo and try to craft a company out of it,” said independent Silicon Valley analyst Rob Enderle, noting specifics were still lacking. Thompson didn’t specify which properties will be targeted under this new initiative, though he did affirm plans to focus on the company’s most popular and ad-friendly outlets, including its News, Finance, Sports and Yahoo Mail platforms.