Douglas MacMillan of the Wall Street Journal says Marissa Mayer will announce a “new plan” for Yahoo this week.
Yahoo will hold its third quarter earnings call this Tuesday.
Citing a source briefed on Yahoo’s plan, MacMillan says Mayer will discuss the following on the call:
- A change in acquisition strategy. MacMillan says Mayer will defend her decision to spend $US200 million or so on “aqui-hires” — those deals where Yahoo bought failing startups in order to hire their engineering teams. After defending acqui-hires, Mayer will promise to do fewer of them — in favour of larger acquisitions that might be able to help grow Yahoo revenues.
- Cost-cutting plans. “Ms. Mayer is expected to outline cost-cutting efforts. Mayer is also likely to explain her recent decisions to lay off nearly 500 employees in India and Jordan as part of a broader effort to cut costs.”
Mayer is currently under pressure from activist shareholder Jeff Smith. Smith, of Starboard Value, wrote an open letter a couple weeks ago, saying that Mayer should quit making acquisitions altogether, find a tax efficient way to monetise its Asian assets, and sell to AOL.