Yahoo to Lay Off 1,400 as Online Ads Stumble

Yahoo today reported a 64%-drop in its third-quarter profits, lowered its revenue estimates for the remainder of the year, and said it planned to cut 10% of its workforce, or about 1,400 jobs, MarketWatch reports. Yahoo reported net income of $54.3 million in the quarter, down from $151.3 million from the same period last year, citing a downturn in online ad spending.

The company projected its 2008 revenue will range from $7.18 billion to $7.38 billion—down from a forecast of $7.35 billion to $7.85 billion issued three months ago, AP adds. “The steps we are taking this quarter should deliver both near-term benefits to operating cash flow, and substantially enhance the nimbleness and flexibility with which we compete over the long term,” CEO Jerry Yang said. (More Yahoo stories.)