Feeds

Yahoo! to cut 12% of staff, reports Q1 profit slide

Meanwhile, another manager flees

  • alert
  • submit to reddit

Intelligent flash storage arrays

Yahoo! today announced plans to cut around 12 per cent of staff after seeing profits slide for the first quarter.

As the Internet portal struggled with falling advertising revenue, it posted a pro-forma net income of $7.6 million for the quarter ended March 31 2001, or one cent per share. This was way down on the $60.5 million profit, or 10 cents per share, it reported for the same period last year.

Sales at the US dotcom fell to $180.2 million from $230.8 million.

The company also announced it would lay off around 400 employees in the next 30 days. Meanwhile, Heather Killen will leave her post of senior VP of international operations in mid-June.

For the second quarter, the dotcom said it expected to post results that would show anything from a loss of $10 million to a point where it would break even. It will take a charge of between $40 million to $60 million in the quarter.

For the full year, profits were expected to fall at between break-even and $50 million.

Sales for Q2 were forecast at between $165 million and $185 million, with $700 million to $750 million expected for the full year 2001.

Yahoo! CEO Tim Koogle said in a conference call the company found itself in a "challenging" and "temporary" situation, but that its "asset base, focus and resolve" would get it through. Koogle's own position at the dotcom can also be described as "temporary" - last month Yahoo! announced he would step down as CEO. A replacement has not yet been found.

The company, which said it had 1.1 billion average daily page views and 192 million users, had prepared investors for the Q1 figures by issuing two revenue warnings this year. On March 7 it cut sales forecasts to between $170 million and $180 million. This followed January's announcement, when it reduced sales forecasts to $220 million to $240 million. ®

Related Link

Yahoo! Q1 statement

Related Stories

Yahoo! loses! sales! supreme!
Yahoo! victim! of! real! world! economics!
Yahoo! shares! suspended!
Yahoo! Europe MD resigns

Intelligent flash storage arrays

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Managing SSL certificates with ease
The lack of operational efficiencies and compliance pitfalls associated with poor SSL certificate management, and how the right SSL certificate management tool can help.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.