Yahoo! has announced another round of job cuts as advertising revenues and profits slumped in the first quarter.
The Web portal says total revenues fell 13% to $1.6bn (£1.1bn) in the three months to March 31 with advertising revenues dropping 12%.
Net profit dived 78% to $118m (£81m) in the first quarter although the company’s earnings in the comparable period last year did include a gain of $401m (£275m) from an investment in Chinese e-commerce company Alibaba. Without the gain profits dipped 16%.
The company says it is to cut another 675 jobs, equivalent to about 5% of its workforce, as it looks to save money in the wake of the global slump in advertising.
The latest cuts follow the 1,000 positions it axed last January and the 1,500 lost in October.
Carol Bartz, who replaced Jerry Yang as chief executive three months ago, says although the firm is not “immune” to the economic downturn its cost management and products leave it well positioned in the long-term.
“While we experienced pressure in both display and search advertising in the first quarter, we believe Yahoo! remains one of the most compelling advertising buys on the internet,” she says.
Last month, Yahoo! appointed Elisa Steele as its chief marketing officer.
Yahoo!’s results compare unfavourably with those of rival Google, which reported revenues increased 6% in the first quarter.