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Yahoo! Q3: Profits Down 51%, Plans 1,500 Job Cuts

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So the record Apple Q4 results must really be starting to irritate fellow tech companies...

In a far more representational (and depressing) reflection of the greedy banker caused global economic slowdown / impending recession are Yahoo's Q3 financial results posted this week which continue some particularly worrying trends for the search giant. Most notably while revenue did manage to stay relatively stable ($1,786m verses $1,768m in Q3, 2007) operating income nosedived 53 per cent from $150m in the year ago quarter to $70m. Net income was even worse plummeting 64 per cent from $151m in Q3 2007 to just $54m.
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This dramatic downturn has come at an inevitable human cost too with Yahoo confirming "at least" 10 per cent of its entire workforce will be made redundant during the fourth quarter, a cut which in human terms tallies to at least 1,500 job losses - Happy Christmas...

"An increasingly challenging economic climate and softening advertising demand contributed to revenues this quarter coming in at the low end of our outlook range," admitted Yahoo CFO Blake Jorgensen. "While we are disappointed with our results, we're pleased that we continue to benefit from the aggressive cost management efforts we have pursued during the year. ... we have the balance sheet strength, liquidity, and free cash flow we need to continue to make progress on our core strategies as we address this slowdown."

So while Apple's results left me frustrated by the inevitable smugness that would abound from all Cupertino's fans (I remain but a fair-weather ally of the iPhone) I do have to admit: it was a lot less depressing to write than this...

Expect Microsoft's financial and legal minions to start sniffing once again around an ill-fated union...

Link:
Press Release (PDF Warning)

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