Yahoo Inc. (YHOO), has reported a loss in the fourth quarter of $303.4 million as the economic downturn hit sales of online ads.
The company reported spending about $137 million on severance and reorganization. It laid off about 1,500 employees last month, reducing its workforce from 16,000 in the third quarter to 13,600. Yahoo also reported $488 million in international business expenses during the fourth quarter.
It has now hired a new CEO, Carol Bartz hoping to boost the company in a new direction. Co-founder Jerry Yang has stepped down after 18-months as chief executive.
“Despite the challenging economic environment, Yahoo! delivered adjusted operating cash flow above the midpoint of guidance for the fourth quarter,” said Yahoo! Chief Executive Officer Carol Bartz. “The company also made important investments while aggressively managing costs, leaving us better positioned to weather the economic downturn and emerge stronger when advertiser spending improves. We have work to do, but I am excited by Yahoo!’s opportunities, and encouraged by the tremendous innovation and momentum I’ve
seen since joining the company as CEO.”
The company’s shares rose 5% in after-hours trading.
The full company press release can be downloaded here.
Image by misocrazy under Creative Commons.
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