After a 23% plummet in fourth quarter profits, Yahoo's CEO said the company will face job cuts and continued "headwinds" in 2008, the Wall Street Journal reports. Facing decreased advertiser spending, the company will lay off 1,000 employees next month, though it will try to relocate some within Yahoo. Such bleak expectations prompted a 10% drop in shares after hours.
Advertisers in some sectors were hit by broader economic issues, causing slowed spending, according to Yahoo executives. The company's president expects things to get better. “We've seen a solid start to the year,” she said, but “we're obviously watching economic developments very closely.” Yahoo also announced that it will no longer share broadband profits with AT&T, instead focusing on providing content for the company.