DOW JONES NEWSWIRES
Yahoo Inc.'s (YHOO) largest outside shareholder expressed disappointment that the Internet company's latest workforce reduction occurred before Chief Executive Scott Thompson unveiled his strategic plan for the company.
Third Point LLC, run by hedge fund manager Dan Loeb, said in a letter Wednesday that Yahoo's shareholders and employees have heard few specifics from Thompson about his strategic vision.
Third Point recently launched a website and blog, valueyahoo.com, that includes its outline of a strategic plan. In its letter Wednesday, Third Point encouraged the board and Thompson to visit its site "to the extent they genuinely value thoughtful shareholder input."
Third Point has a 5.8% ownership stake in Yahoo, according to FactSet Research.
Yahoo confirmed plans Wednesday to begin laying off 2,000 employees, or 14% of its work force, as the Internet company tries to cut costs and change its focus after years of flat revenue and declining use of some of its websites.
The Wall Street Journal has reported that further cuts are expected, citing a person familiar with the matter. The layoffs were initially reported by the blog All Things Digital, which, like The Wall Street Journal and this newswire, is owned by Dow Jones & Co..
Yahoo last week rejected Loeb as a nominee to its board, and said he had rejected the company's compromise attempt to name one of his nominees and find a new mutually agreeable second candidate. Yahoo named three new independent board members instead.
Yahoo shares closed up nine cents at $15.27 Wednesday and were unchanged after hours.
-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287; nathalie.tadena@dowjones.com
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