Yahoo warns of job cuts as Q1 figures are posted

Pre-tax profits from Yahoo's international operations continue to increase in importance, rising to nearly $80m in Q1 2009, but, unveiling its first quarter results, Yahoo warned it would cut 5% of its global workforce.

Yahoo announced last October it would cut about one-tenth of the workforce. And, unveiling Yahoo's results last night, Yahoo chief executive Carol Bartz warned the company "is not immune to the ongoing economic downturn".

Yahoo insisted the new round of layoffs were not in response to market conditions, but flowed from Bartz's investigations into the company's operations.

Bartz said:: "While we experienced pressure in both display and search advertising in the first quarter, we believe Yahoo remains one of the most compelling advertising buys on the Internet."

Globally, Yahoo posted revenues of $1.58bn in Q1 2009. Excluding the impact of currency rate fluctuations, it said revenues for the first quarter of 2009 would have declined 8% from the first quarter of 2008.

Marketing services revenues from Yahoo's owned and operated sites was $872m in Q1, a 10% decrease from the same period in 2008. Yahoo said the decrease was driven by a 3% decline in search advertising revenue and a 13% decline in display advertising revenue.

Marketing services revenue from affiliate sites was $511m for the first quarter of 2009, a 16% decrease year on year.

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