Feeds

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

Q4 profits dip

Boost IT visibility and business value

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." ®

Build a business case: developing custom apps

More from The Register

next story
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

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.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.