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No surprise as Yahoo cuts 675 jobs
By Michael Liedtke |
April 23, 2009, Thursday
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Print Edition
Print Edition
YAHOO! Inc's first-quarter results tread familiar ground as the Internet company's financial erosion triggered another round of layoffs and management promised better days ahead.
With its three-year slump worsening, Yahoo says it will lay off nearly 700 workers - the first significant payroll purge since Yahoo hired Carol Bartz as its new chief executive in January. It marks the Sunnyvale, California-based company's third round of job cuts over the past 14 months.
Meanwhile, investors are hoping that the challenges still facing Yahoo will persuade the company it's finally time to work out an Internet advertising partnership with Microsoft Corp after more than two years of intermittent talks.
Both companies would like to lessen Internet search leader Google Inc's dominance of the online ad market. Bartz has refused to comment on media reports of renewed negotiations.
Recession
Neither the lackluster first-quarter results nor the latest layoffs came as a surprise.
Analysts had already predicted Yahoo's earnings and revenue would sag as the recession made it more difficult to sell Internet ads. And hints about job cuts were leaked to the media last week.
The planned layoffs will affect 5 percent of Yahoo's 13,500 workers. The estimated 675 people losing their jobs this time around will be notified during the next two weeks.
Bartz said she was trying to focus Yahoo more on its strengths in online news, finance, sports, e-mail and Internet searches, where it is a distant second to Google.
In remarks elaborating on the layoffs, Bartz thinks Yahoo can free up more money to expand those products around the world and possibly hire more workers.
Yahoo earned US$118 million, or 8 cents per share, during the first quarter of the year.
That was a 78 percent drop from net income of US$537 million, or 37 cents per share, the previous year.
The latest earnings matched the modest expectations among analysts surveyed by Thomson Reuters.
With its three-year slump worsening, Yahoo says it will lay off nearly 700 workers - the first significant payroll purge since Yahoo hired Carol Bartz as its new chief executive in January. It marks the Sunnyvale, California-based company's third round of job cuts over the past 14 months.
Meanwhile, investors are hoping that the challenges still facing Yahoo will persuade the company it's finally time to work out an Internet advertising partnership with Microsoft Corp after more than two years of intermittent talks.
Both companies would like to lessen Internet search leader Google Inc's dominance of the online ad market. Bartz has refused to comment on media reports of renewed negotiations.
Recession
Neither the lackluster first-quarter results nor the latest layoffs came as a surprise.
Analysts had already predicted Yahoo's earnings and revenue would sag as the recession made it more difficult to sell Internet ads. And hints about job cuts were leaked to the media last week.
The planned layoffs will affect 5 percent of Yahoo's 13,500 workers. The estimated 675 people losing their jobs this time around will be notified during the next two weeks.
Bartz said she was trying to focus Yahoo more on its strengths in online news, finance, sports, e-mail and Internet searches, where it is a distant second to Google.
In remarks elaborating on the layoffs, Bartz thinks Yahoo can free up more money to expand those products around the world and possibly hire more workers.
Yahoo earned US$118 million, or 8 cents per share, during the first quarter of the year.
That was a 78 percent drop from net income of US$537 million, or 37 cents per share, the previous year.
The latest earnings matched the modest expectations among analysts surveyed by Thomson Reuters.
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