Yahoo! to! shed! 400! jobs!
More casualties of the dotcom downturn
Yahoo! is to axe 400 jobs. Most of the losses will come from its international and broadcast operations. According to Reuters some middle management positions are also likely to be shed.
But Yahoo! also says that it will recruit in some growth areas, resulting in a net loss of around 300 jobs - or around ten per cent of its total workforce.
At this stage it's not known if any of the job cuts will be at Yahoo! UK or Yahoo! Europe.
This is the second set if job losses this year at Yahoo!. In April, the company announced its plans to shed some 400 staff.
Speaking to analysts yesterday chief exec, Terry Semel, said that he intended to reduce Yahoo!'s reliance on advertising revenue from 76 per cent this year, to around 50 or 60 per cent by 2004.
Like many dotcoms that rely heavily on advertising Yahoo! has suffered from the decline in online advertising.
The challenge that lies ahead now is how to make cash from Yahoo!'s 210 million regular users who are used to using its search directory, news service, email etc for free. Getting enough of them to part with their cash might not be an easy task.
Yahoo! also reaffirmed that it expects revenues for Q4 2001 to be between $160 million and $180 million. It expects pro forma earnings before interest, depreciation and amortisation (EBITDA) to range from between a $5 million loss to a $10 million profit.
It expects full year revenues for 2001 to be in the region of $688 million to $708 million, with pro forma EBITDA of between $10 million to $25 million.
Looking ahead, Yahoo! expects revenues for the full year 2002 to increase to between $725 million and $785 million, with pro forma EBITDA of between $35 to $75 million. ®