Yahoo Announces Job Cuts
January 30, 2008 | by Geoff Duncan
Yahoo says it plans to lay off 1,000 workers as it quarterly numbers show a 23 percent drop in profits.
Saying that the company faces a tough year, Yahoo CEO Jerry Yang has confirmed the company will be cutting 1,000 jobs as the company fights to restore profits and regain its competitive edge. Yahoo currently employes about 14,300 people; Yang did not disclose where the job cuts would hit.
Yahoo's quarterly financials (PDF) reveal that fourth quarter profits at the Internet giant have fallen 23 percent to $205.7 million, compared to $268.7 million for the same period a year ago.
"While we will continue to face headwinds this year," Yang wrote in a statement, "we believe that the moves we are making will help us exit 2008 stronger and more competitive and return to higher levels of operating cash flow growth in 2009."
The possibility of job cuts at the Internet company first surfaced last week. Yahoo earns most of its money from online advertising, and has been competing against the likes of Google, an increasingly-aggressive Microsoft, as well as online advertising efforts of AOL.
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Ian Bell on Jan 30th, 2008 at 9:47 AM:
This comes as no suprise. I like Yahoo! but they are simply spread too thin and in areas they should not be. 1,000 does not seem as bad as the blogs had been predicting (4700+).
I have read that a lot of the cuts would come from their overseas offices, and in the blog areas of Yahoo!.