Yahoo to axe 700 more jobs
- Added:
- Apr 22, 2009
Yahoo is set to made 700 further redundancies as the embattled online media firm announced disapointing first-quarter results.
The move is the first round of layoffs since Yahoo hired Carol Bartz as its new chief executive in January, but marks its third round of job cuts during the past 14 months.
The planned layoffs will affect 5% of Yahoo's 13,500 workers. The estimated 675 people losing their jobs this time around will be notified during the next two weeks.
Product managers are amongst those most likely to face redundancy in the new round of cuts, according to Bartz's comments in a conferance call to analysts.
"We sort of had one product management person for every three engineers, so we had a lot of people running around and telling people what to do, but nobody was doing anything," Bartz said.
Yahoo will now focus Yahoo on its strengths in online news, finance, sports, e-mail and Internet search.
Yahoo axed about 1,000 jobs in February 2008 and another 1,500 or so late last year while co-founder Jerry Yang was still running the company.
Yahoo earned $118 million, or 8 cents per share, during the first three months of the year.
That represents a 78 percent drop from net income of $537 million, or 37 cents per share, in the year-ago period.
Last year's results included a non-cash gain of $401 million. But Yahoo's profit this year still would have been lower even after subtracting last year's one-time boost.
Revenue fell 13 percent to $1.58 billion. If not for the stronger dollar, the sale of an e-commerce site in Europe and the loss of some fees, Yahoo said its revenue would have been down by just 3 percent.
After subtracting commissions paid to its ad partners, Yahoo's revenue stood at $1.16 billion -- about $50 million below analyst estimates.
Management indicated that Yahoo's results will erode again the second quarter, with total revenue expected to range from $1.42 billion and $1.63 billion. Yahoo's revenue totaled $1.8 billion in last year's second quarter.
In a Tuesday conference call with analysts, Bartz refused to comment on recent media reports about the Microsoft negotiations heating up again.
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