Yahoo is trimming its business operations in Latin America as particularly in Argentina and Mexico. The technology company is planning to close its offices in Buenos Aires and Mexico City, according to TechCrunch.
A spokesperson for Yahoo confirmed the closures, but clarified that Latin America remains an important market for the company, which is keeping its teams in Sao Paolo, Brazil.
The spokesperson said, “Yahoo is focused on maximizing growth. With that in mind, we communicated to employees in Argentina and Mexico that we will be closing our offices there. Our impacted employees will be treated with respect and fairness through this transition.”
“Latin America is an important region for Yahoo and we will continue to invest in the people and products there. Our teams in Brazil and Coral Gables [Florida] will remain vital to the company.”
The company has been reducing its operations overseas under the leadership of Marissa Mayer. The company already reduced or closed its offices in Asia, Europe, and the Middle East.
Yahoo under pressure to implement changes
In 2012, Yahoo hired Marissa Mayer as chief executive officer to help turnaround the company towards growth and profitability. Since then, Mayer implemented different strategies such as acquiring startups to boost the company’s products and services as well as its talent pool.
Yahoo is still struggling to achieve growth despite Mayer’s efforts, and investors are becoming impatient and losing their confidence on the company’s leadership.
Earlier this month, Starboard Value expressed its frustration on the leadership of Yahoo citing the reason that its core business “failed to produce acceptable results” despite its efforts and billions spent on acquisitions over the past three years.
Starboard Value said Yahoo shareholders appear to have lost all confidence in the Board and management of the company.
The activist investor urged the Board and management to be open-minded, assess, and compare the stand-alone spin off and restructuring of the core business. Starboard Value believes that there are credible parties interested to buy Yahoo’s core business.
Furthermore, Starboard Value is demanding significant changes in the company including its management, Board composition, strategy, and execution. The activist investor warned it would launch an election contest if the Board does not accept a significant change is necessary.
Yahoo reportedly planning to cut jobs
It was reported that Yahoo is planning to reduce its workforce by 10% or 1,000 jobs. Some people familiar with the plan indicated that the company will provide details regarding the job cuts during the release of its quarterly financial results next month.
A recent report from Reuters indicated that Yahoo will present its strategic vision during its earnings conference call on February 2. The company wants to evaluate the reaction of its shareholders before making a decision on its strategic move.