Yahoo is planning to layoff 20 per cent of its workforce just days after Google decided to give a 10 per cent pay rise to its employees.
Citing two independent sources, TechCrunch reported that Yahoo execs have asked managers to target 20 per cent of the workforce for layoffs.
Reacting to the report, a Yahoo spokesperson said that the news of a 20 per cent employee layoff was false and misleading, but did not deny that the company is planning layoffs.
“Yahoo is always evaluating expenses to align with the company's financial goals. However, a 20 per cent reduction in Yahoo's workforce across the board is misleading and inaccurate,” the spokesperson said.
Yahoo's immediate rival Google has decided to offer a 10 per cent pay rise to all its employees across the world.
Under the leadership of CEO Carol Bartz, the company is planning to revamp its entire structure to get back in the online advertisement and content market.
Yahoo has recently conducted a search deal with software giant Microsoft which will allow Bing to power searches on Yahoo.