Yahoo! quarterly profits decline, job cuts widely expected


Yahoo! quarterly profits decline, job cuts widely expected
Yahoo! has reported that comparable fourth-quarter operating income fell by 38 per cent as the struggling company continues its restructuring.

In a conference call yesterday, chief financial officer Blake Jorgensen said that the firm expects a "workforce realignment of approximately 1,000 people".

The statement largely confirms layoff rumours as Yahoo! undergoes major reorganisation to cut costs and "streamline" in order to compete with rival Google.

Although it is unclear exactly what the "realignment" might entail, job-cut rumours for the web search engine company range from several hundred to several thousand.

"This sort of transition takes time," Jerry Yang, Yahoo! co-founder and chief executive, said during a conference call with analysts yesterday. "But we have the talent and the strong cash flow it takes to succeed."

"Rather than across-the-board cuts, we'll make targeted reductions alongside targeted investment," he added.

Profits for the fourth-quarter were put at $205.7 million (£102.85 million), more than a 23 per cent decrease from last year's $268.7 million (£134.35 million).

Looking ahead, the employer of over 14,000 said that it expected revenues for 2008 to be in the range of $535 billion (£267.5 billion) to $595 billion (£297.5 billion), missing Wall Street estimates which put the figure at $585 billion (£292.5 billion).

Shares in Yahoo! fell more than ten per cent to $18.71 (£9.36) in extended trading on Wall Street yesterday after closing at $20.81 (£10.41).

The California-based web portal has seen its shares lose 40 per cent of their value since October 2007, while Google's have lost 20 per cent over roughly the same period.

Bookmark with:
Bookmark with: Digg Digg Bookmark with: Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
HR / Recruitment
Health / Beauty
Hotel / Catering / Restaurants
IT / Internet
Insurance / Pensions
International / Overseas
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Transport / Logistics
Travel / Tourism / Leisure