Yahoo has said it will cut jobs after drop-off in ads
Search engine provider Yahoo has announced an almost 80 percent drop in profit after releasing its first-quarter results. The result is due to a decline in ad revenue.
With sales of just over $1.16 billion, a profit of $118.7 million was given, which is a 78 percent drop from the last quarter. Analysts predicted a similar result, so it doesn’t come as too much of a surprise, especially in the current economic climate.
After the debacle last year of “will-they-or-won’t-they” reach some sort of strategic partnership with Microsoft, Yahoo is still trying to form some sort of partnership with the software giant after co-founder Jerry Yang was replaced as CEO Carol Bartz in January. Some saw Yang as the main stumbling block for the two companies coming together.
In order to consolidate after such a poor result, the company will cut approximately 5 percent of its worldwide work force, which translates to about 700 positions.
“Our process is to continuously try to drive our costs down,” Yahoo Chief Financial Officer Blake Jorgensen said in an interview. “This is really to try to build in flexibility for future investment.”