Yahoo confirms plans to cut Buzz, other products
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Yahoo confirmed Thursday that it plans to cut ‘underperforming or off-strategy products,’ including Yahoo! Buzz.
In an e-mailed statement, company spokeswoman Dana Lengkeek wrote: ‘We continuously evaluate and prioritize our portfolio of products and services, and do plan to shut down some products in the coming months such as Yahoo! Buzz, our Traffic APIs, and others. We will communicate specific plans when appropriate.’
Earlier this week, the Internet company announced layoffs of 600 employees, cutting its work force by 4%.
Yahoo is struggling to keep up with competitors such as Google and Facebook. Revenue have risen by less than 2% so far this year and Chief Executive Carol Bartz has promised to increase the company’s operating profit margins to as much as 24% by 2013, the Associated Press reported earlier this week. The margin stood at about 12% through the first nine months of this year.
Yahoo’s statement said the cuts are intended to allow the company to focus on its core strengths and fund innovation. Lengkeek added that the company continues to invest in ‘areas of strategic focus’ including local, mobile and communications.
-- Abby Sewell