Feeds

Yahoo! Will! Axe! One! Thousand! Workers!

Q4 profits dip

Eight steps to building an HP BladeSystem

Yahoo! president Sue Decker believes her company is "moving from catch-up mode to a mode of true differentiation." But its fourth quarter profits were down 23 per cent, and it will soon axe seven per cent of its work force.

This afternoon, during a conference call for the benefit of industry analysts and reporters, Decker and Co. announced Q4 2007 net profits of $205.7m, down from $268.7m in Q4 2006. Then they said their "outlook contemplates a workforce realignment of approximately 1000 people". That means layoffs. These will come in mid-February, and thanks to these layoffs, the company will eat between $20m and $25m. Or so it says.

But fourth quarter revenue was up eight per cent, jumping from $1.7bn in 2006 to $1.83bn, and the Yahooligans have high hopes for the future. "In October, we outlined our strategy to achieve a significant multi-year transformation of Yahoo!'s business in order to capture the large and growing market opportunity that we see ahead for the internet," said CEO Jerry Yang. "We're making good progress executing on this strategy, and I'm confident we're headed in the right direction."

Yang argued that the Yahoo!'s "core business areas" grew faster in the second half of 2007 than the first half, with marketing revenue from Yahoo! owned and operated sites growing 20 per cent from a year ago. And he was pleased to announce that the company has renewed its partnership with mega ISP AT&T.

"We have expanded our relationship with AT&T to be their ad platform partner in search and display for their portal and mobile platforms," he said.

What does he think of the layoffs? He calls them "a necessary next step in our transformation." "Rather than across the board cuts," Yang said, "we will make targeted reduction alongside targeted investments, planning to eliminate redundancies in bureaucracy and redeploy talent." ®

Mobile application security vulnerability report

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.