Internet behemoth Yahoo has announced to lay off another over 600 employees after the internet company posted 78 percent drop in its first-quarter profits.
Carol Bartz, new chief exec for Yahoo, asserted that the economy-driven fall in advertising spending had affected the first quarter financial results more than what analysts had forecasted.
Announcing the results for the first quarter, the California-based company posted net profits of $118 million, dropped from $537 million registered for the same period a year earlier, and its revenues during the period were $1.58 billion, as against $1.82 billion.
However, this considerable plunge in quarterly net profits led the company to cut another 5 percent of its total global workforce. Incidentally, the company axed 10 percent of its workforce, or around 1,600 employees, during the fourth quarter of the last year, roughly leaving it with 13,600 employees at the end of 2008.
Commenting upon the financial results and proposed job-cuts, Ms. Bartz quoted in a news release, “Yahoo is not immune to the ongoing economic downturn, but careful cost management in the first quarter allowed our operating cash flow to come in near the high end of our outlook range”.
However, Yahoo predicted that its revenues for the existing quarter would range anywhere between $1.425 and $1.625 billion.
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Yet another painful job cutting round at Yahoo. Where will it end? No one really knows. The company has only 13,000 employees left and any further job cuts could have disastrous effect on employees' morale. Carol Bartz is doing firefighting after taking over Yahoo and with not many good news recently from Yahoo, the job cuts themselves helped the company share price shot up by 8.5 percent since Monday close.
(International Business Times)