Yahoo to slash workforce by 15% after £3.3bn losses in 2015

Struggling internet giant's chief executive says move is part of 'a strategic plan'

Following the 34 per cent drop in its market value in the last year the company has announced an 'aggressive strategic plan'

Struggling internet giant Yahoo has announced a 15 per cent cut to its workforce and plans to close offices in five cities after a plunging $4.4 billion (£3.3 billion) loss for 2015.

Up to 2,000 staff were affected by the changes, the company said, which would involve the closure of regional offices worldwide in Dubai, Mexico City, Buenos Aires, Madrid, and Milan.

The company’s under-pressure chief executive Marissa Mayer said it was part of “a strategic plan that we strongly believe will enable us to accelerate Yahoo's transformation”.

She added that it would “dramatically brighten our future and improve our competitiveness, and attractiveness to users, advertisers, and partners."

The loss was blamed on writedowns, or the cutting of the value of its assets, within its business during the final quarter of 2015.

Following the 34 per cent drop in its market value in the last year the company announced an “aggressive strategic plan” and was “exploring strategic alternatives” to drive growth in 2016.

While the company confirmed it was still unsure about a planned spin-off of its internet business, despite earlier reversing its plans to do so. That business will also be split from its lucrative 15 per cent stake in Chinese online marketplace Alibaba.