Yahoo axes 2,000 jobs: 14 per cent of workforce

Troubled internet giant tries to refocus on core strengths and to convince against more nimble rivals

Yahoo is to axe 2,000 jobs, 14 per cent of the troubled internet company's workforce.

The move, the sixth mass layoff in four years – under three different chief executives – is intended to save $375m (£236m) annually.

New CEO Scott Thompson (pictured), former head of PayPal, is restructuring Yahoo to focus on what it sees as its core strengths, while also playing catchup in mobile computing.

"Today's actions are an important step towards a bold, new Yahoo – smaller, nimbler, more profitable and better equipped to innovate as fast as our customers and our industry require," said Thompson.

"Our goal is to get back to our core purpose: putting our users and advertisers first. And we are moving aggressively to achieve that goal."

A behemoth among the first generation of internet companies, in recent years Yahoo has struggled to make a convincing case for itself against the dominance of Google, the rejuvenated Apple, the rise of extensible social platforms, such as Facebook and Twitter, and 'high concept' startups, such as Pinterest.

As a result, Yahoo has appeared neither nimble enough to bring smart ideas to market swiftly, nor aggressive enough to use its size effectively.