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Yahoo lays off 1000, shifts business focus

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."




by MacNN Staff

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Comments

  1. sachxn

    Joined: Dec 1969

    0

    sad

    its really a sad new, they should find a different way and should not go Quark's way.

    Sachin

  1. climacs

    Joined: Dec 1969

    0

    good luck jerry

    poor Yahoo. Google is eating their lunch. I wish I had the balls to short Yahoo but that's so risky in high tech. Still, their future does indeed look bleak. Yahoo is yesterday's news.

  1. gor3don

    Joined: Dec 1969

    0

    climacs

    Hey climacs, yes shorting can be quite risky. Look into buying puts instead. The loss is quantified but the upside is the same.

  1. hokizpokis

    Joined: Dec 1969

    0

    wow

    sales and revenues are up

    profits down...

    so time to s**** the employees...

    all this from a company that is only making $200 Mil in profits!!!!

    how pathetic

    ...and some still wonder why the US market is so f'ed...

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