Yahoo7 axes 10% of workforce as part of ‘review of operations’

Yahoo7 is understood to be making a large number of redundancies today, with around 20 sales staff affected, as the company dumps all “non-essential business units”.

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Ed Harrison, CEO of Yahoo7, said: ” Like any business, we regularly review our operations to ensure we remain agile and responsive to changing market conditions. As a result of our most recent review, we have announced a number of team changes which include proposed redundancies in the Australian team, as we continue to focus on growth products.

“We will not be commenting on status of any individual team members as this is always a private business matter.”

The redundancies, thought to be around 10% of the workforce, come as Yahoo7 looks to leave its existing offices in Sydney’s expensive Walsh Bay district, in a sign that the digital joint-venture between Yahoo and Seven is unravelling.

In July US telecommunications giant Verizon signed a deal to buy Yahoo, a move which was thought may provide the nail inn the coffin of the decade-long partnership between Seven and Yahoo.

At the time the deal was announced Verizon said it planned to merge Yahoo with AOL which it acquired a year ago.

In a statement to the ASX at the time of the deal, Seven said it would use the time between now and the completion of the deal in Q1 2017 to consider a range of options that exist under the current terms, to work out which would create the most value for Seven West Media shareholders.

The company said it looked forward to discussing Verizon’s plans for Yahoo, but noted: “Seven West Media has a number of positive options that will define its future development and success in digital media, building on its already highly successful development over the past few years”.

It highlighted the success of the joint-venture over the past 10 years, with each party bring a specialty to the business and how much development Seven had experienced with its own digital properties.

“Beyond the joint-venture, Seven West Media has dramatically expanded its digital products, audience and investments and now leads the Australian market in the creation and distribution of digital, premium video content beyond broadcast television,” the statement said.

In March,  Seven West Media took back its digital assets for its its Pacific Magazines properties back from Yahoo7.

The decision by Seven to bring the digital content of Pacific in-house prompted Yahoo7 to launch its own lifestyle and entertainment offering, Be.


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