Yahoo trims its ranks by Zuzana Zelenakova

According to published reports Internet giant Yahoo Inc. is planning to lay off 1.000 workers in "targeted reductions". The reason is simple, slow revenue growth, which the company has experienced despite having hundreds of millions users all around the world. Jerry Yang, Yahoo co-founder and executive, announced that the plan is scheduled on February. The company will reduce its workforce of 14.300 people by seven percent. It is its biggest layoff since dot-com bust in 2001. "This is a necessary step in our transformation," said Jerry Yang. In the last three month of 2007 Yahoo profits fell to 205.7 million dollars, which is 23 percent drop compared to 268.7 million dollars at the same period in 2006. Share price declined from 19 cents per share in final fiscal quarter in 2006 to 15 cents per share in 2007. "While we will continue to face headwinds this year, we believe that the moves we are making will help us exit 2008 stronger and more competitive and return to higher levels of operating cash flow growth in 2009," stated Yang. Financial analysts stay pessimistic and predict that Yahoo will earn approximately 11 cents per share in final quarter of 2007.

related story: http://news.yahoo.com/s/ap/20080129/ap_on_hi_te/earns_yahoo;_ylt=Atg53m4IGo3FHznB.yEV5O.s0NUE

by Zuzana Zelenakova for PocketNews (http://pocketnews.tv)

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