Falling earnings and the weak economy are taking their toll on internet search giant Yahoo. The company reported a 23 percent drop in fourth quarter profits over the previous year’s results. For the full year profits were down 12 percent. Yahoo also gave a mild outlook for 2008. CEO Jerry Yang is confident of better times ahead. However, he cautioned that the effects of recent acquisitions will not show until 2009.
A reorganization and structuring will cut nearly 1000 jobs for the Sunnyvale, California company. This will be its largest purge since trying to recover from the dot com bust earlier in the decade. The 7 percent reduction in force is expected to save Yahoo over $100 million in expenses this year.
In the bookstore: Yahoo (books)
On the web: Yahoo
Tags: reduction in force, yahoo, yahoo layoff
January 31st, 2008 at 10:28 pm
There was talk last year of Microsoft taking over Yahoo - I think this would be the best solution for both companies, and would finally provide some serious competition against Google.
Shame about the job cuts, but that’s the way the world works.
February 1st, 2008 at 12:06 am
I have also heard of Microsoft buying Yahoo. We’ll see what happens.
-Tommy
February 1st, 2008 at 11:36 am
I can honestly say I didn’t know anything about this when I posted my last comment, but it looks like Microsoft-Yahoo takeover plans are getting serious now.
http://edition.cnn.com/2008/BU.....index.html
Microsoft has today made an offer for Yahoo - I really hope it goes through. The software expertise of Microsoft coupled with the internet success of Yahoo would make a great company, in my opinion.
February 1st, 2008 at 11:49 am
I agree 100%.
-Tommy