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Yahoo’s Headcount Was Relatively Flat in 2014

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Apr. 6 2015, Updated 7:07 p.m. ET

Yahoo’s headcount was relatively flat in 2014

During the fourth quarter earnings call, Yahoo’s (YHOO) management noted that the company closed 2014 with approximately 12,500 full-time employees. Comparatively, Google (GOOG) reported a headcount of 53,600 employees as of December 2014 and Facebook (FB) reported a 45% increase in headcount with a total of approximately 9,100 employees at the end of 4Q14.

Microsoft (MSFT), meanwhile, saw a net reduction of 4,100 employees to a total of 123,000 employees as of December 31, 2014. This decline was due to the company’s broad layoffs as a part of its new direction under CEO Satya Nadella.

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Even though Yahoo has added more than 1,000 people from acquisitions, Yahoo’s headcount has been relatively flat throughout the current management’s tenure. Yahoo’s acquisition of Tumblr added nearly 200 people, while the acquisition of Flurry 100 and BrightRoll added more than 400. Other building block acquisitions also added employees as well.

The reason Yahoo’s headcount didn’t increase

Yahoo shut down 12 offices, including offices in Vietnam, Malaysia, Indonesia, and Budapest in order to consolidate its operations. The company also discontinued more than 75 products. The reason for reducing the headcount was to improve efficiency, to align the company’s resources with its strategies and growth opportunities, and to drive enhanced profitability in the business.

Investors can gain portfolio exposure to Facebook, Microsoft, and Google by considering the Technology Select Sector SPDR ETF (XLK). All these companies together have a 20% weight in XLK.

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