BUSINESS

Yahoo! to shut Madrid office

Closure is part of struggling tech firm’s plans to reduce its workforce by 15%

Marissa Mayer, CEO of Yahoo!, has announced deep cuts.
Marissa Mayer, CEO of Yahoo!, has announced deep cuts.ROBERT GALBRAITH / REUTERS

Yahoo! has announced a 15% staff reduction and the closure of its Madrid office after reporting annual losses of $4.36 billion.

CEO Marissa Mayer has changed strategy after taking over three and a half years ago and embarking on a period of acquisitions aimed at restoring the flagship internet company’s former glory.

But growth never happened, and Mayer is now forced to effect deep cuts to reduce operating costs. Most of the downsizing will take place in the first quarter of this year, and includes the closure of offices in Madrid, Buenos Aires, Mexico City, Milan and Dubai.

The idea is to bring the total workforce down to 9,000 employees after eliminating 1,500 jobs. Yahoo! will also divest itself of assets that could be bought by the likes of telecoms firm Verizon, which bought media firm AOL last June.

English version by Susana Urra.

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