Yahoo reported bad financial results and unveiled it will cut at least 10 percent of its workforce, which means at least 1,520 Yahoo employees will lose their jobs:
The company hopes that the cuts will help it to reduce costs, while not significantly reducing its profitability.
The cuts were the second for Yahoo this year, with the company letting 1,000 employees go this last January. In total, Yahoo has let go close to 16 percent of its workforce since the start of the year.
Yahoo will also be relocating offices and consolidating real estate to try to reduce costs. Mr. Yang stated in a conference call, "We are identifying ways we can operate more efficiently."
Yahoo's revenue for the quarter was $1.79B USD, up 1 percent from the quarter a year before. Without the commissions it paid ad partners, the company pulled in $1.33B USD, slightly lower than the average analyst prediction of $1.37B USD. Net income for Yahoo was $54M USD, down 51 percent from last year. Profits excluding one-time charges were $123M USD, roughly in line with analyst expectations.
While the report contained some disappointing spots, it mostly was in line with analyst predictions, so some analysts hailed it as good news for the troubled search firm. Sandeep Aggarwal, Senior Internet Analyst at Collins Stewart described the report as having "no more negative surprise beyond what we had already expected." And Jeffrey Lindsay, senior analyst with Sanford C. Bernstein & Co said that the report "could have been a lot worse."
Mr. Lindsay praised the job cuts, stating, "If they really do take the staff numbers down for real, that will have a very beneficial effect."