Yahoo! To Do Away With 700 More Jobs on Profit Drop

Search engine Yahoo! Inc. (YHOO) will slash hundreds more jobs on news that ad sales continued to drop in the first quarter of 2009.

Online ad revenue hasn’t slumped this much since the dot-com bust, analysts say.

The reality is hitting Yahoo! with a vengeance. The company will cut 600-700 more jobs, or about 5 percent of its workforce, in the next couple of weeks as it tries to protect its profits. Yes, Yahoo! still is earning money although less than it did even a year ago. The company today reported net income of $118 million, a tidy sum until one considers that Yahoo! posted a $537 million profit during the same period a year ago.

Revenue, meanwhile, also was down – to $1.58 billion from $1.82 billion in 2008’s first quarter. Excluding the advertising sales Yahoo! shares with partners, the company sold $1.16 billion worth of goods; analysts polled by Reuters Estimates forecast revenue of $1.1.6 billion.

Yahoo! held its conference call with analysts Tuesday after the bell. The company’s stocks were up 1.81 percent in after-hours trading.

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