It’s raining pink slips at Yahoo today, as the iconic tech company announced it was laying off  2,000 employees — or 17 percent of its total workforce — as part of a massive restructuring effort.

Yahoo has suffered a great deal of turmoil over the past few years. Board members fired long-time CEO Carol Bartz in September 2011 as punishment for failing to increasing revenues as well as significantly losing advertising share from Facebook and Google. During her tenure (and perhaps just prior to it), Yahoo’s products grew stagnant and failed to keep pace with innovation from competitors. Overall the company suffered from a lack of leadership, which is something new CEO Scott Thompson was charged with fixing after assuming his post in January.

“Today’s actions are an important next step toward a bold, new Yahoo! — smaller, nimbler, more profitable and better equipped to innovate as fast as our customers and our industry require,” Thompson said in a statement about the layoffs.

Yahoo estimates that it will save $375 million once all the layoffs have been completed, with an expected $125 to $145 million in a pretax cash charge relating to employee severance packages. The company declined to give a more thorough analysis of the layoffs until after its first quarter financial results on April 17.