Yahoo Seeks Turnaround with 2000 Job Cuts
Rumors about troubles for Yahoo have been swirling for over a month, and now it seems they were at least partially true. The company has announced that it will be cutting 2,000 employees as CEO Scott Thompson focuses on “core priorities.”
Thompson, who took the reins at Yahoo in January after leaving PayPal, says that by reducing its workforce by 14 percent, the company expects to save $375 million a year. Yahoo did not specify which departments would be cut, but analysts anticipate that at least some of the cuts will hit the company’s Silicon Valley staff.
Throughout his three month tenure, Thompson has yet to provide a detailed new direction for Yahoo, but he has promised employees that change is on the horizon.
“Today’s actions are an important next step toward a bold, new Yahoo—smaller, nimbler, more profitable and better equipped to innovate as fast as our customers and our industry require,” said Yahoo CEO Scott Thompson in a written statement.
The statement painted a broad picture of Thompson’s plans.
“We are intensifying our efforts on our core business and redeploying resources to our most urgent priorities. Our goal is to get back to our core purpose—putting our users and advertisers first,” Thompson’s statement continued.
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Yahoo’s staff was informed of the cuts via memo Wednesday, as the company says it notified employees affected by “job elimination or phased transition.”
“Over the last 60 days, we’ve fundamentally re-thought every part of our business and we will continue to actively consider all options that allow Yahoo to put maximum effort where we can succeed,” the memo read. “Unfortunately, reaching that goal requires the tough decision to eliminate jobs, which means losing colleagues and parting with friends.”
Ultimately, it may be tough for Yahoo to seek upward mobility with a decreased staff and the almost certain morale decline that structural changes and job cuts can cause—particularly because several tech blogs have reported that this week’s cuts are just the beginning of a prolonged wave of layoffs.
“You have to wonder why any employee that is any good would stay at this point,” said Colin Gillis, Analyst for BGC Financial. “Will Thompson have the horses he needs to reach his goals?”
Daniel Loeb, a hedge fund manager whose Third Point firm owns 5.8 percent stake in Yahoo, says that Thompson’s choice to impose layoffs without detailing plans for revenue growth was a bad move for the CEO, who has already distanced himself from the rest of Silicon Valley by suing Facebook over Internet patent rights.
“Many of Yahoo’s senior-level employees and investors have apparently seen enough and heard too little,” said Loeb in a statement.
Intelliwave SiteSense boosts APTIM material tracking
“We’ve been engaged with the APTIM team since early 2019 providing SiteSense, our mobile construction SaaS solution, for their maintenance and construction projects, allowing them to track materials and equipment, and manage inventory.
We have been working with the APTIM team to standardize material tracking processes and procedures, ultimately with the goal of reducing the amount of time spent looking for materials. Industry studies show that better management of materials can lead to a 16% increase in craft labour productivity.
Everyone knows construction is one of the oldest industries but it’s one of the least tech driven comparatively. About 95% of Engineering and Construction data captured goes unused, 13% of working hours are spent looking for data and around 30% of companies have applications that don’t integrate.
With APTIM, we’re looking at early risk detection, through predictive analysis and forecasting of material constraints, integrating with the ecosystem of software platforms and reporting on real-time data with a ‘field-first’ focus – through initiatives like the Digital Foreman. The APTIM team has seen great wins in the field, utilising bar-code technology, to check in thousands of material items quickly compared to manual methods.
There are three key areas when it comes to successful Materials Management in the software sector – culture, technology, and vendor engagement.
Given the state of world affairs, access to data needs to be off site via the cloud to support remote working conditions, providing a ‘single source of truth’ accessed by many parties; the tech sector is always growing, so companies need faster and more reliable access to this cloud data; digital supply chain initiatives engage vendors a lot earlier in the process to drive collaboration and to engage with their clients, which gives more assurance as there is more emphasis on automating data capture.
It’s been a challenging period with the pandemic, particularly for the supply chain. Look what happened in the Suez Canal – things can suddenly impact material costs and availability, and you really have to be more efficient to survive and succeed. Virtual system access can solve some issues and you need to look at data access in a wider net.
Solving problems comes down to better visibility, and proactively solving issues with vendors and enabling construction teams to execute their work. The biggest cause of delays is not being able to provide teams with what they need.
On average 2% of materials are lost or re-ordered, which only factors in the material cost, what is not captured is the duplicated effort of procurement, vendor and shipping costs, all of which have an environmental impact.
As things start to stabilise, APTIM continues to utilize SiteSense to boost efficiencies and solve productivity issues proactively. Integrating with 3D/4D modelling is just the precipice of what we can do. Access to data can help you firm up bids to win work, to make better cost estimates, and AI and ML are the next phase, providing an eco-system of tools.
A key focus for Intelliwave and APTIM is to increase the availability of data, whether it’s creating a data warehouse for visualisations or increasing integrations to provide additional value. We want to move to a more of an enterprise usage phase – up to now it’s been project based – so more people can access data in real time.