In January of 2008 Yahoo, Inc., announced through the Reuters news agency and other news outlets that it

has embarked on a multiyear transformation that includes making some tough decisions about the business to help the company grow. Yahoo plans to invest in some areas, reduce emphasis in others and eliminate some areas of the business that don’t support the company’s priorities.

Several reports stated that around 1,000 Yahoo employees were expected to lose their jobs as a result of the restructuring.

Required

Assume that you are Yahoo’s vice president of human relations. Write a letter to the employees who are affected by the restructuring. The letter should explain why it was necessary for the company to undertake the restructuring. Your explanation should refer to the ideas discussed in the Appendix, “Emerging Trends in Managerial Accounting,” of this chapter.