Yahoo has reported a substantial drop in profits in its third quarter results and has indicated plans to lay off nearly 10 percent of its staff - that's around 1500 employees - in near future.
The results disclosed by Yahoo showed a 64 percent drop in its profits with the total third quarter revenue standing at USD 1.8 billion; a mere 1 percent increase from the corresponding period in 2007.
However more alarming was the fact that its profits stood at 54 million dollars which was way below the 151 million dollar profit that it had posted during the same period last year.
The declining financial standing of Yahoo in recent times had lead many to believe that job cuts are in the offing and on Tuesday Yahoo CEO, Jerry Yang confirmed these fears by stating “We anticipate we will reduce headcount by at least 10 percent” by the year end.
Yahoo has mentioned the weakening of the online advertising as one of the possible causes for its less than impressive performance and has hinted at taking initiatives to enhance their long-term competitiveness.