Yahoo will lay off at least 10% of its global staff before the end of the year, the company announced today along with disappointing financial results for its third quarter.
The layoffs are the major portion of a US$400 million cost-cutting plan Yahoo is implementing that also includes other measures for achieving what the company called "structural efficiencies."
Revenue for the third quarter, which ended September 30, increased only 1% to US$1.768 billion compared with the same quarter in 2007.
Subtracting the commissions Yahoo pays to its advertising partners, revenue was US$1.325 billion, up 3%.
Chief Financial Officer Blake Jorgensen said in a statement that the company's revenue in the quarter was disappointing, and blamed the troubles on the tough economy and lower demand for advertising.
Net income came in at US$54 million, or US$0.04 per share, down from net income of US$151 million, or US$0.11, in 2007's third quarter.
On a pro forma basis, which takes into account one-time items, net income was US$123 million, or US$0.09 per share, down from net income of US$153 million, or US$0.11 per share.