Yahoo will lay off 15 percent of its workers
Yahoo said the job cuts are part of a four-point "strategic plan for growth" that will streamline its product offerings and initatives and which Yahoo said should return the company "modest and accelerating growth" in 2017 and 2018.
Yahoo said it will explore additonal unspecified "strategic alternatives" in parallel to the comeback plan, noting that it will "engage on qualified strategic proposals" including the "reverse spin" where it sells its core assets and keeps its valuable Alibaba holdings.
Many investors are clamoring for Yahoo to sell its core internet business.
The changes come as Yahoo CEO Marissa Mayer is under fire from investors, more than three years into a turnarnound plan that has so far delivered little payoff. Yahoo's stock is down nearly 40% from its 52-week high and activist investors are calling for the company to be sold and are threatening a proxy fight to replace the company's directors.
Yahoo has reportedly cut off talks with potential acquirers, as it presses ahead with its own plan to separate its core internet business from its holdings in Chinese ecommerce giant Alibaba and Yahoo Japan, in a complex "reverse spin out" that Yahoo has said could take more than one year to complete. Yahoo re-iterated its commitment to separating the core business from the Asian assets on Tueday.
Shares of Yahoo were down 1.4% at $28.65 in after hours trading on Tuesay.
Yahoo said on Tuesday that it would explore the divestiture of "non-strategic assets," including real estate and patents, that it estimated could fetch between $1 billion and $3 billion in cash.