updated 11:25 pm EST, Tue January 29, 2008
Yahoo layoffs, focus shift
Yahoo recently unveiled plans to remove 1000 of its 14,300 employees by mid-February to cut costs and to refine its focus on its major services. The New York Times reports that in light of its fourth quarter earnings, and a dismal forecast of future financials, layoffs will occur in unspecified areas of Yahoo's workforce. While the amount of employees laid off are many, the company said that it would be investing heavily in select areas of business, so individuals effected by the cutbacks are free to apply to the focus areas.
Claiming income a year ago of $269 million, this year's financial data showed a 23-percent decline in profit, resulting in net income of $206 million. This is due to increased competition from other online services, such as Google and Microsoft.
Sales grew 8-percent to $1.8 billion, with revenues of $1.4 billion. Analysts expected these numbers, while investors were disappointed with Yahoo's bleak predictions, causing shares to fall almost 10-percent.
"While we will continue to face headwinds this year," says Jerry Yang, CEO of Yahoo, "we believe that the moves we are making will help us exit 2008 stronger and more competitive and return to higher levels of operating-cash-flow growth in 2009."