Yahoo set to cut 10% of workers
Published: Wed, Oct. 22, 2008 12:30AM
Modified Wed, Oct. 22, 2008 05:35AM
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closeSAN FRANCISCO -- Yahoo will fire at least 1,500 workers to cope with a crumbling economy that dented its third-quarter profit.
The purge outlined Tuesday represents a 10 percent reduction in Yahoo's payroll of about 15,000 employees. It's the second time in nine months that Yahoo has resorted to mass layoffs.
Yahoo felt the squeeze in the third quarter as it earned $54.3 million, or 4 cents per share. That was a plunge of 64 percent from $151.3 million, or 11 cents per share, at the same time last year.
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If not for nearly $67 million in one-time expenses and a higher tax rate, Yahoo said it would have made 9 cents per share. That figure matched the average earnings estimate among analysts surveyed.
Revenue rose 1 percent to $1.79 billion. After subtracting commissions paid to advertising partners, Yahoo said its revenue stood at $1.32 billion -- about $50 million below analyst estimates.
Yahoo shares gained nearly 7.6 percent in extended trading after ending the regular session at $12.07, down 79 cents.
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