Poor profits in the fourth quarter have led Yahoo to announce it will cut 1,000 jobs in February.
The firm said that it had seen a drop of 23 per cent in profits during its fourth quarter to $206 million; down from $269 million the same time last year. Operating income also tumbled, falling 38 per cent from $308 million in 2006, to $191 million during 2007.
Revenues, however, rose by eight per cent from $1.7 billion to $1.8 billion. The company referred to gains in advertising revenue, as well as Yahoo-owned and affiliated websites as key growth areas.
Speaking during a conference call on Tuesday, Yahoo’s chief executive Jerry Wang (pictured, left) announced what he called a ‘realignment’ of 1,000 jobs. He added that while there will be some job losses, the company would try its best to move employees to vacant roles.
Source: Information Week