Yahoo confirms job cuts amid declining revenues

Yahoo has confirmed a 1% cut in its global workforce after revealing a 4% dip in revenues over the last three months of 2010.

Revenues for the quarter were $1.2bn (£757.3m) compared to the $1.26bn (£795.2m) it generated in Q4 2009.

However, Yahoo’s net profit more than doubled from $153m (£95.6m) in 2009 to $312m (£196.9m) last quarter.

The results were better than expected by market observers, helped by display ad revenues increasing 14% year on year to $635m (£400.8m) from $560m (£353.4m) in Q4 2009.

Carol Bartz, Yahoo CEO, said, “It has been a very encouraging quarter and year for Yahoo, in which we saw our plans to turn around the company gain momentum. For the year, operating income, margins, earnings per share and return on invested capital doubled.”

However, the news was offset by reports that the company will continue to cut its overheads with the axing of more than 140 jobs, mainly from its marketing department.

A Yahoo statement on the cuts said: “The personnel changes we are making are part of our ongoing strategy to best position Yahoo for revenue growth and margin expansion, and to support our strategy to deliver differentiated products and experiences.”

This story first appeared on newmediaage.co.uk

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