Yahoo! to Axe Workforce by 10 Percent

1,500 people will lose their jobs

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    NEWSLETTERS

    TK
    KNTV
    Microsoft is interested in buying Sunnyvale company Yahoo.

    The hammer fell above the closing bell for Yahoo! employees.

    The Sunnyvale-based company announced Tuesday that it will cut 10 percent of its workforce, adding up about 1,500 jobs.

    The cuts will take place over the next two months to help employees cope and are a direct result of a crumbling economy that dented its third-quarter profit.

    Employees Not Saying Yahoo! Now

    [BAY] Employees Not Saying Yahoo! Now
    Nobody is smiling at Yahoo after hearing that 1,400 employees are getting canned.

    This will be Yahoo's second round of mass cutbacks this year as management tries to end a three-year slump that has hammered the Internet company's stock price.

    The situation got worse in the third quarter as Yahoo earned $54.3 million, or 4 cents per share, plunging 64 percent from $151.3 million, or 11 cents per share, last year.

    That is a penny a share better than Wall Street predictions.

    The profit fell short of the 9 cents per share forecast by analysts polled by Thomson Reuters.