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Yahoo planning to cut at least 10 percent of its workforce: report

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Yahoo Inc is working on a plan to cut its workforce by at least 10 percent and it could start the process as early as this month, Business Insider reported, citing sources.

The layoffs, which would result in more than 1,000 people leaving the tech giant, is set to affect Yahoo’s media business, European operations, and platforms-technology group, Business Insider said on Wednesday.

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This move follows activist investor Starboard Value LP’s letter to Yahoo on Wednesday ramping up pressure on Yahoo, taking aim at Chief Executive Officer Marissa Mayer and her leadership team and raising the prospect that a proxy battle is approaching.

Starboard implied that Mayer and her officers needed to go, without naming her specifically.

The activist investor also threatened to shake up the board if Yahoo’s stock continued to suffer.

Yahoo spokeswoman Rebecca Neufeld said the company will provide more details on its turnaround plan prior to its fourth quarter earnings call later this month.

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Starboard, which owns about 0.75 percent of Yahoo, has been pushing for changes at the Internet company since 2014, urging it to separate its Asian assets and auction off the core business.

The investor, together with other shareholders, has demanded Yahoo separate the Asian assets, including stakes in Chinese e-commerce company Alibaba Group Holding Ltd and Yahoo Japan Corp <4689.T>, and conduct an immediate public auction of the core business, including search and advertising businesses.

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But Yahoo is resisting, instead pursuing a tax-free spinoff of the core business, which could take at least a year.

Yahoo had appointed management consulting firm McKinsey & Co, in November, to help with the reorganization of its core businesses.

The company also had plans to make big changes to its media unit, restructuring and consolidating it, including making cuts and shuttering some efforts.

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In December, Yahoo shelved plans to spin off the Alibaba stake and said it would create a separate company that would house Yahoo’s Internet business and its stake in Yahoo Japan.

Reuters could not immediately reach Yahoo Inc for comment outside regular U.S. business hours.

(Reporting by Sneha Teresa Johny in Bengaluru; Editing by Sunil Nair)

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Enjoy this piece?

… then let us make a small request. Like you, we here at Raw Story believe in the power of progressive journalism — and we’re investing in investigative reporting as other publications give it the ax. Raw Story readers power David Cay Johnston’s DCReport, which we've expanded to keep watch in Washington. We’ve exposed billionaire tax evasion and uncovered White House efforts to poison our water. We’ve revealed financial scams that prey on veterans, and efforts to harm workers exploited by abusive bosses. We’ve launched a weekly podcast, “We’ve Got Issues,” focused on issues, not tweets. Unlike other news outlets, we’ve decided to make our original content free. But we need your support to do what we do.

Raw Story is independent. You won’t find mainstream media bias here. We’re not part of a conglomerate, or a project of venture capital bros. From unflinching coverage of racism, to revealing efforts to erode our rights, Raw Story will continue to expose hypocrisy and harm. Unhinged from corporate overlords, we fight to ensure no one is forgotten.

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Trump’s DOJ tells Supreme Court it is legal to fire transgender workers

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The Trump administration on Friday informed the U.S. Supreme Court it is the opinion of the Dept. of Justice that it is legal under federal law for employers to fire transgender workers merely for being transgender.

The DOJ's brief states Title VII of the Civil Rights Act of 1964, which prohibits discrimination on the basis of sex, does not apply to transgender workers.

In reporting the development Buzzfeed calls it one of the Trump administration's "most agressive steps yet to legalize anti-transgender discrimination."

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GOP leadership tells House Republicans to lie about white supremacist gun massacres – call it ‘violence from the Left’

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House Republican leadership has sent a memo to GOP members of Congress directing them to lie about right wing white supremacist gun massacres, and to call it "violence from the left."

The memo, which The Tampa Bay Times acquired, includes talking points for congressional Republicans to parrot when speaking with reporters or constituents. It instructs them on how to address questions about gun violence, including the domestic terrorism recently perpetrated in El Paso, Texas.

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Trump blames market meltdown on ‘conspiracy of weenies’

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President Trump responded to a tanking stock market, a global economic slowdown and an inverted yield curve by suggesting there was a conspiracy by economists and the media to make him look bad.

Trump tried to blame this week’s stock market slide, which was triggered by worries of a coming recession, on the media.

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