What do companies Nokia, Sony and Yahoo Inc. have in common?
While firms in the construction and food sectors are optimistic about what the rest of 2012 has to offer, things are not looking so good for the ones aforementioned.
In the biggest restructuring move in its history, Yahoo Inc. slashed 14% of its workforce, eliminating approximately 2,000 jobs in total – a move expected to save the company $375 million a year.
Albeit having one of the largest audiences on the Web, the Internet Corporation has fallen behind rivals Facebook Inc. and Google Inc. in terms of advertising dollars. Restructuring seems to be the first major step in CEO Scott Thompson’s game plan for the firm.
Thompson, who came to Yahoo in January, said the cuts “are an important next step towards a bold, new Yahoo – smaller, nimbler, more profitable and better equipped to innovate”.
"I have seen big turnarounds before, and this company has the foundation, the spirit, the backbone and the creativity to get it done," added Thompson in a statement.
Not soon after Yahoo’s big move, Sony announced plans to lay off 10,000 employees, about 6 percent of the company's global workforce, in a bid to return the troubled company to profitability as the firm grapples with declining earnings.
Let us not forget Finnish communications firm Nokia and its restructuring moves at its plants in Finland, Hungary and Mexico as it seeks to cut costs by moving smartphone assembly work to Asia.
Restructuring and cost cutting aside, these corporations will have to step-up their game and be more consumer-centric in order to capture (and of course, keep) the hearts of consumers – in a way similar to what competitors Apple, Facebook and Google are doing.
So will Nokia, Sony and Yahoo Inc. succeed in reclaiming what’s lost? Only time will tell.