Yahoo! To Lay Off 1,500 Due To Recession
October 21, 2008 at 5:01 PM (PT)
It looks like YAHOO! INC. is battening down the hatches in preparation for a long recession. On the heels of a 64% drop in profit and a dramatic slowdown in advertising, the Internet search engine announced plans to cut at least 10% of its staff after advertising spending slowed.
According to BLOOMBERG.COM, CEO JERRY YANG had to do something in the face of third-quarter net income falling from $151.3 million to $54.3 million. The staff cuts represent at least 1,500 jobs, which could save more than $400 million annually. Other cuts are expected to be made in hiring contractors and real-estate costs. "The focus is to make sure we are better positioned to handle a long-term, protracted recession if that does occur," CFO BLAKE JORGENSEN said. "We're also making sure those costs get out of the system for good."