Yahoo Plans To Pursue Reverse Spin; Cut 15% Of Workforce - Quick Facts

(RTTNews) - Yahoo! Inc. (YHOO) announced a strategic plan to simplify the company, narrowing its focus on areas of strength to better fuel growth, drive revenue and increase efficiency in 2016 and beyond.

The company's Board plans to pursue reverse spin concurrent with other strategic alternatives. The company plans to explore non-strategic asset divestitures that, if consummated, could generate in excess of $1 billion in cash.

The company aims to improve profitability to reach an adjusted EBITDA run rate of approximately one billion dollars by the second half of 2016.

In addition, Yahoo plans to reduce its workforce by roughly 15 percent and exit five offices in Dubai, Mexico City, Buenos Aires, Madrid, and Milan, subject to local laws and consultation processes.

By the end of 2016, the company anticipates having approximately 9,000 employees and fewer than 1,000 contractors. This represents a workforce that is roughly 42 percent smaller than it was in 2012 and will result in savings in short term operating expense of $400 million annually.