Yahoo announced today 10% lay off of company employees because of the disappointing third quarter profit and also due to recent financial crisis. The cost cutting measure is going to save $400 million for the company.
The third quarter revenue increased only 1 percent to $1.768 billion compared with the same quarter in 2007. Net income drops at $54 million, or 4 cents per share, down from net income of $151 million, or 11 cents, in 2007’s third quarter. The profit fell short 9 cent per share as per the forecast.
“Going through layoffs is a very tough thing, but I also think we are doing the right thing by keeping flexibility for the company,” Jerry Yang, Yahoo co-founder and CEO said.
Some investors think that Yahoo wouldn’t have been in such a bad shape if the company didn’t decline the offer of $33 per share from Microsoft for the buy-out plan. The latest lay off is the second round of employee cut for the battered company who announced a reduction of 1000 employees this winter. The company share closed on Tuesday at $12.07, down nearly 50 percent since the beginning of the year.
Source: MacWorld
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