Yahoo to Cut 700 Jobs as Profit Plunges

By Newser Editors and Wire Services
Posted Apr 21, 2009 4:21 PM CDT
The Yahoo flag flies at Yahoo headquarters in Sunnyvale, Calif.   (AP Phoito/Paul Sakuma)
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(Newser) – Yahoo says its slump worsened in the first quarter as the recession made it more difficult to sell the ads that generate most of its profits. The company says it will cut 600 to 700 jobs, or about 5 percent of its work force. Yahoo says it earned $118 million, or 8 cents per share, during the first three months of the year. That represents a 78 percent drop from net income of $537 million, or 37 cents per share, in the year-ago period.

"Yahoo is not immune to the ongoing economic downturn," Yahoo chief Carol Bartz said in a statement.