Yahoo! reported a collapse in its first-quarter profits by 78 per cent as advertisers reign in on spending amig the economic crisis. The search giant also stated it would cut its workforce by 700 or 5% of its workforce.
Yahoo had revenue of US$1.58 billion, down 13 percent from the first quarter of 2008 but higher than the $1.20 billion consensus expectation from analysts polled by Thomson Reuters.
Meanwhile, net income fell 78 percent to $118 million, or $0.08 per share, compared to $537 million, or $0.37 per share, in the first quarter of 2008, the company said Tuesday.
The job cuts announced Tuesday are only the latest in a string of reductions at the embattled Internet company. Yahoo! cut about a tenth of its workforce ro about 1,500 jobs, at the end of 2008, after slashing around 1000 jobs at the beginning of last year. At the end of 2008, the company held 13,600 employees.
In a statement, CEO Carol Bartz said the company “experienced pressure” in display and search advertising, but added that Yahoo will benefit from the recovery of brand advertising when it happens.
“We believe Yahoo remains one of the most compelling advertising buys on the Internet,” said Bartz, who took the helm of the company in January.
Yahoo! is the world’s largest global online network of integrated services and is one of the most trafficked Internet destinations worldwide.
Related news articles:
I’m sad to know that YAHOO after all these years in the Business is having such a down fall, but I’m more than sure YAHOO would bounce back even harder knockin them out the box with all the talk…Yes I’m a big YAHOO fan, I’m online atleast three times a week…GOOGLE is my other favorite browser, I don’t have much of a choice with GOOGLE I do have a G1 and its the best maybe GOOGLE will help YAHOO bounce the ball back on the court who knows…Well that’s it that’s all I can say right now and I really do believe YAHOO will hit back hard….MIKE{MJB}