Yahoo to Announce Restructuring Plan

Yahoo Inc., the largest Internet portal, is expected to unveil a restructuring plan today that involves reducing its work force by as many as 400 people, or about 13% of its total. Sunnyvale, Calif.-based Yahoo confirmed that it will disclose details of a restructuring at a meeting with analysts, but a company spokesman declined to provide details.

W.R. Hambrecht analyst Derek Brown estimated that the cutbacks could affect 10% to 15% of Yahoo’s work force. Yahoo executives said earlier this year that they were reviewing the company’s 44 business units for possible cutbacks.

On Wednesday, Yahoo expanded its board of directors by adding Northwest Airlines Chairman Gary L. Wilson and Southern California supermarket mogul Ronald W. Burkle. In addition to his role at Northwest, Wilson, 61, is a director at Walt Disney Co., where he was chief financial officer from 1985 to 1990. Burkle, 48, is founder and managing partner of Yucaipa Cos., which has invested in several Internet companies. He also is on the boards of KB Home Corp. and Occidental Petroleum Corp.

Yahoo also said it will work with SBC Communications Inc. to sell fast Web access with new features in the second-biggest U.S. local telephone company’s 13-state region. Terms weren’t disclosed. The high-speed Web service, known as digital subscriber line, or DSL, will be available in mid-2002, the companies said.

Yahoo shares rose $1.24 to close at $15.21 on Nasdaq.