SUNNYVALE, Calif. (KCBS) -- Hundreds of Yahoo employees were informed Wednesday they would lose their jobs in the first wave of 1,500 cuts a company spokesman said would continue through the end of the year.
The search giant is cutting 10 percent of its workforce as part of an overall plan to trim $400 million to shore up the company's finances.
KCBS' Mike Colgan reports
The layoffs were first announced in October.
KCBS’ Mike Colgan reports the finance department was expected to take a major hit.
The pink slips started to come as one of Yahoo Inc.'s largest shareholders, Ivory Investment Management LP, urged the Internet company to sell its search unit to Microsoft.
In a letter to the company's board, the investment firm proposed a deal Wednesday in which Microsoft would acquire Yahoo's search engine and Yahoo would retain 80 percent of revenue generated by search queries on its own site.
Ivory proposed Microsoft pay $15 billion for the search platform. It says that would give Yahoo shareholders $24 to $29 per share, well above Yahoo's recent price.
Ivory owns about 1.5 percent of Yahoo.
Talks between Microsoft and Yahoo about a possible buyout of all of Yahoo fell apart this summer.
(jro)
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