Yahoo is allowing employees to cash out their stock options in a bid to keep its best and brightest from leaving the company.
It is thought that least 10 per cent of its workforce, or approximately a thousand employees, will face job cuts ahead of a planned reorganization, as Yahoo forges ahead with a plan to bring its balance sheet back out of the red.
Yahoo is reportedly suffering from an exodus of valued executives and talented engineers, as staff jump ship in seek of more secure employment options.
For human resource managers, soothing the shattered nerves of an organization’s collective workforce once rumors of job cuts are in the air is critical to business operations.
The loss of key managerial figures can have a detrimental effect on workplace team morale and productivity, therefore it is crucial for HR to have strategies in place to manage talent amidst times of turmoil.
Failing to retain key employees can result in lost knowledge and insecure coworkers, and companies will be faced with issues such as training time and investment and costly candidate search.
Yahoo’s strategy of offering short term financial incentives in order to stem the tide of top talent from leaving the internet company may provide the security and morale boost that its senior executives are clearly seeking.
While all parts of the company are likely to be affected, BusinessInsider reported that Yahoo’s media business, its European operations and its platforms technology group, including the technology that supports the company’s services, could be targeted by the restructure.
According to Yahoo’s most recent quarterly report, the company has decreased its headcount by 14 per cent over the last year in a steady drip of layoffs, but still employs more than 10,000 people.