Yahoo's profits plunge 64%, and 1,500 staff could go
Yahoo already had problems, and now it's running into a financial downturn that could hit internet advertising
Yahoo has just released its third quarter financial results, and while sales rose 3% to $1.33 billion, profits plunged by 64% from $151.3 million to $54.3 million.
According to Bloomberg, analysts had predicted quarterly sales of $1.37 billion.
The company also said that it would cut at least 10% of its staff as advertising spending slowed. Since it employs around 15,000 people, that would mean 1,500 jobs could go, saving $400 million a year.
Yahoo's shares rose on the news. Bloomberg says they "rose 86 cents, or 7.1%, to $12.93 in extended trading after the job cuts were announced." They're still a long way below the $31 of Microsoft's initial offer, which puts co-founder and CEO Jerry Yang in a difficult position.
A few days ago, as Marketwatch reported, Google announced that its quarterly revenues jumped 34% to $4.04 billion, while profits beat expectations at $1.35 billion.
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