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
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
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
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
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.