Yahoo! profits fall with 10% of jobs to get the chop

Yahoo! has reported a pre-tax profit fall outside of the US of 7% to $119m (£72.8m) in the three months to September 30. The internet giant has responded with the announcement it will cut around 10% of its global workforce.

In its US business it posted a 14% drop on pre-tax profits to $291m (£178m).

The job cuts will affect around 1500 members of staff around the world, but it is unclear at this stage if marketing positions will be affected.

The news comes just nine months after it let go of 1,000 members of staff, only to replace many of them just months later.

The weak results also comes months after the company rejected Microsoft’s £25bn takeover offer. Yahoo! is now understood to be considering a merger deal with AOL.

The advertising tie-up with Google in the US has also been postponed, as US and EU regulators continue to consider the implications of the partnership.

Yahoo! chief executive, Jerry Yang, says: “I believe getting Yahoo! more fit at this time will provide the flexibility necessary for navigating current conditions and strengthen our position for the future.”

2 Joseph Fernandez 2 ’( 3 € 2 STR
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