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Internet Yahoo Cuts 1,000 Jobs as Profits Fall 23%
Jason Mick (Blog) - January 30, 2008 3:37 PM
Print E-mail del.icio.us 33 comment(s) - last by robbyjr.. on Feb 3 at 4:01 AM

Yahoo CEO Jerry Yang hasn't been forced to step down yet, but as Yahoo continues to flounder, he's being forced to make some bold changes in the coming year.  (Source: Thomas Brown - Bloomberg News)
Making choice cuts, Yahoo struggles to stay afloat amidst plummeting profits

Yahoo, despite owning the most visited set of properties on the Internet, has been forced to make  big changes to deal with losing ground to its hungry competitors like Google.  Yesterday, Yahoo CEO Jerry Yang confirmed fears with an announcement that profit had significantly dipped from the previous year.

Yahoo experienced profit dips for several quarters, and now has another to add to the list.  The fourth quarter saw profit fall to $206 million USD, down from $269 million USD from the previous year, a drop of approximately 23.5%.  This comes despite revenue increasing $113 million USD to a total of $1.83 billion USD.

Profit for the year sunk to $660 million USD, from $751 million USD only a year ago.  Revenue increased over the year, but could not help the sinking profit margin.

The end result is that Yahoo will lay off approximately 7% of its workforce, trimming 1,000 of its 14,300 jobs.

CEO Jerry Yang says the company is facing strong "headwinds" and said, "This is a pivotal time for Yahoo's business and we have a unique window of opportunity right now to make the necessary, game-changing investments."

Analysts state that Yahoo may be in for even harder times if it loses its broadband provider deals with some of the major telecoms, including AT&T.  Many analysts have speculated that AT&T may drop Yahoo entirely.

Furthermore, Yahoo's heavy investments in online advertising may lead to further woes if advertising takes a hit due to the jittery, downward-leaning economy.

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Sell
By Murst on 1/30/2008 4:37:07 PM , Rating: 2
Soon they'll be cheap enough for News Corp to buy them... if they aren't already.

MS might wanna jump in and purchase them just for their patents.




RE: Sell
By XPguy on 1/30/08, Rating: -1
RE: Sell
By helios220 on 1/30/2008 5:47:08 PM , Rating: 2
You do realize that virtually all stocks down? Do a quick 3 month history on virtually any big name stock.

At the time of posting this, even the all mighty Google's stocks are down $198 dollars since November, it totally is because they are super lame and has nothing to do with the dominant bearish trend of the entire market... yeah that's it.

I personally don't care for Apple, but that was still one of the stupidest things I’ve read in a while.


RE: Sell
By Eomer of Aldburg on 1/30/2008 6:33:53 PM , Rating: 2
By the way it's, "one of the most stupid..." not "stupidest."


RE: Sell
By eye smite on 1/30/2008 6:51:26 PM , Rating: 2
You took the time to post a grammatical correction? I'm slightly ashamed, I don't think there's anyone here that didn't understand his use of the word stupidest. Oh well, I guess you was gonna learn him sumtin huh.


RE: Sell
By helios220 on 1/30/2008 6:59:29 PM , Rating: 2
I'm not surprised in the least bit that he took the time to post the grammatical correction. It's almost standard practice in forums when one person insults another person's intelligence that you nitpick the reply for any scant traces of irony and display your find with pride.

However, as with the other grammatical connoisseurs who never fail to pounce on that one, check the dictionary:

stupidest [stoo-pid, styoo-] adjective, -er, -est , noun

I’m an Engineer and follow the long professional tradition of poor grammar, but sure enough there’s always someone that takes that bait.


RE: Sell
By Regs on 1/31/2008 10:31:20 AM , Rating: 2
1. He was not the original guy who bashed you, so he thought he'd correct you or show you a better way to say it.
2.Just because the it's a word means it's grammatically correct.
3. The best way to say it is "one of the most stupid". -est would imply the only one, as in singular. You typed it as there is more than one.

4. Get over it.


RE: Sell
By wordsworm on 1/30/2008 11:17:10 PM , Rating: 2
quote:
By the way it's, "one of the most stupid..." not "stupidest."


Who let Dan Quayle post comments in DT?!
http://dictionary.reference.com/browse/stupidest?r...


RE: Sell
By Murst on 1/30/2008 5:56:48 PM , Rating: 2
Most companies don't fire workers when they are posting record profits and revenues...


RE: Sell
By daftrok on 1/30/2008 11:32:46 PM , Rating: 1
Congratulations! You have set the record for number of consecutive -1 post ratings in one month. You're total average rating is currently -0.71! You get....an iMac! YAY!


RE: Sell
By rdeegvainl on 1/31/2008 7:45:19 AM , Rating: 2
As opposed to what? A rock, that falls at the same speed? (Gravity there pal) Besides, apple was still increasing profits, but missed the mark set by speculators by a fraction of a percent, and that is why their stocks fell.


RE: Sell
By wordsworm on 2/1/2008 7:15:42 AM , Rating: 2
I predict MS will make an offer. I figure they've got to be worth around $46 billion. Whether or not they'll sell is anyone's guess. I hope they don't. Yahoo is pretty good still, and I'm back to hating MS. I hope they resist the borg... I mean MS.


My experience
By Scorpion on 1/30/2008 4:27:32 PM , Rating: 2
I never got into using Yahoo much. I used them a long time ago in the past, in the very early years of Web 1.0. The problem I have is that all of their many services failed to grab my attention. I always had some issues with their maps, or their mail, or some other thing. Their interface was never appealing to me, some simple things seemed overly complicated, and then I found other sites that provided the same services with a much cleaner and more user friendly interface and stuck with them. Basically first impressions matter, and Yahoo never gave me a good first impression with what they had to offer. Everything seemed so "half" done and very "busy".




RE: My experience
By kileil on 1/30/2008 4:31:01 PM , Rating: 2
**This comment has been replace by Yahoo.**
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RE: My experience
By retrospooty on 1/30/08, Rating: 0
RE: My experience
By BrownJohn on 1/30/2008 6:23:51 PM , Rating: 2
I feel almost exactly the same. I used their search for a short time, until i realized how powerful google's search was. I never liked their email either. Gmail is a much more clean and intuitive interface, and it doesn't send ads at the very bottom of each message. Google maps is, by far, superior to Yahoo maps as well. Basically, Yahoo has lost all their profit to Google.


RE: My experience
By xti on 1/30/2008 6:27:44 PM , Rating: 2
i agree, you go to their main site, and its like almost they integrated too much, and now its way too busy...headache...google has so much negative space (from an art point of view, white space) on their page that its a big plus.


RE: My experience
By anandtechuser07 on 2/1/2008 3:45:04 AM , Rating: 2
You're comparing google's main webpage with Yahoo's main webpage? Yahoo is a portal and aggregator. Google is a search engine. If you want a clean Yahoo interface, look here:
http://search.yahoo.com/


RE: My experience
By eye smite on 1/30/2008 6:43:40 PM , Rating: 3
The ironic part of that is Yahoo outsourced their search engine to google, and it said right on the search page at yahoo, powered by google. That's what helped leap google into the giant they are now. How many times have companies made bad decisions like that. lol


What does Yahoo! do exactly?
By jskirwin on 1/30/2008 4:30:32 PM , Rating: 2
It's a search engine. It's an email provider. It's a portal...

What exactly is it good at? What does it do well - better than its competitors?

It's search engine is trounced by Google. Ditto email. And portals? Anyone make any money on those? It tried auctions, and never threatened eBay. It tried personals - and was squished by Match.com and eHarmony. It tried social networking - and MySpace and Facebook beat 'em at that.

What do they do better than everyone else? And if the answer is nothing, why are they still around?




RE: What does Yahoo! do exactly?
By Etsp on 1/30/2008 5:58:44 PM , Rating: 2
Their finance page is at least better than Google's...


RE: What does Yahoo! do exactly?
By kmmatney on 1/30/2008 11:46:57 PM , Rating: 2
Their Fantasy Football is pretty awesome.