Yahoo unveiled a new turnaround plan earlier this week during its fourth quarter earnings call.
The internet company revealed it would cut an estimated 1,600 jobs by the end of this year while exploring “strategic alternatives,” which could mean a potential sale to a suitor like Verizon, according to The Washington Post.
Yahoo hopes this plan will cut costs by an estimated $400 million by year’s end, writes Bloomberg. Offices in Mexico and Argentina are expected to shut down while the company consolidates some of its digital magazines and shutters others. That initiative attracted attention a few years ago because of the well-known journalists hired to run some of these ventures.
Marissa Mayer, Yahoo’s current CEO, has been under pressure from investors who have not been impressed with the company’s performance under her watch.
Yahoo’s revenue peaked in 2008 as the web giant struggled to compete with Facebook and Google in the online advertising market, writes Reuters.
Other reports explained Mayer’s inclination to spend capital on projects that haven’t worked out like the $1 billion acquisition of blogging tool Tumblr. But she said two reports claiming she spent millions on a holiday party and free food for workers were not accurate.
The figures “were off by a factor of more than three,” she told listeners during the call, reports Fortune.