Yahoo! Inc. Expects More Problems, with 2016 Revenue to Drop 15 Percent from 2015

Yahoo Sunnyvale

Beleaguered technology company, Yahoo! Inc. (NASDAQ:YHOO), has estimated that both its revenue and earnings will fall this year compared to the 2015 numbers. Revenue numbers are predicted to fall by nearly 15 percent and earnings are estimated at a 20 percent fall, according to reports on Wednesday which apparently cited a Yahoo document.

The news site report indicated that the financial situation of the company had increasingly become frustrating, and the company was in dire need of some revenue. Recode, the news site, cited pages taken from a book of disclosure documents that Yahoo bankers had given out to the prospective buyers willing to bail it out from its problems.

When asked for comment, a Yahoo spokesperson refused to comment on the report.

Revealed in the journal also is news that Yahoo expects its employee count to fall to about 9,000 by the end of 2016. This will be a decrease of 1,500 employees when compared to the 10,500 employees who were there at the end of 2015. However stock-based compensation   for the company remains steady, the documents reveal.

The report goes on to show that in 2017, Yahoo will finally lose another $120 million in fees from its Yahoo Japan search relationship. Yahoo Japan switched to Google many years ago, and so it’s another blow for the technology company. While Yahoo will still get another $120 million annually for branding and alleged technology from Yahoo Japan, its controlling owner, Softbank, is not happy about the arrangement in what has become an increasingly tense situation.

The report shows that the company is expecting 2016 revenue, after backing out traffic acquisition costs, of $3.5 billion in 2016 and also earnings before depreciation, taxes and amortization are estimated at $750 million.

Yahoo has said that it plans to focus more news, sports, finance, and lifestyle. The company also noted that it was planning ‘strategic alternatives’ for its core Internet business and was planning on cutting approximately 15 percent of its workforce to go forward. In what is expected to be a 1,500 job cuts, Yahoo announced that they will lay off the first batch, reported to be around 107 employees soon.