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Yahoo to cut 1,700 jobs; shareholders want CEO sacked too

Search engine giant Yahoo is planning to announce that it will explore "strategic alternatives" for its ailing internet business, which could include a sale, and laying off about 1,700 employees, perhaps including CEO Marissa Mayer.

The move will get rid of about 15 percent of Yahoo's workforce. Moreover, Mayer hopes to sell some of Yahoo's unwanted services for about $1 billion, though she did not identify which ones.

Comcast, Verizon and AT&T may be interested in buying Yahoo's main business, in spite of years of deterioration, according to market analysts.

Yahoo's stock shed 34 cents to $28.72 extended trading after details of Mayer's turnaround attempt emerged. The stock has fallen by more than 40 percent since the end of 2014 as investors' confidence in Mayer has faded.

Even after the large scale firings are completed by the end of March, the company will still have 9,000 workers - three times the roughly 3,000 people that SpringOwl believes the company should be employing, based on its declining revenue.

Yahoo's revenue has been decreasing through most of Mayer's reign, despite spending over $3 billion buying more than 40 companies, while bringing in new talent and developing mobile apps and other services designed to attract more advertisers and web traffic.

After subtracting ad commissions, Yahoo's fourth-quarter revenue dropped 15 percent to $1 billion compared with the previous year the biggest drop since Mayer became CEO in July 2012. Furthermore, the company has forecasted a net revenue decline of 12-17 percent this year.