Popular Posts
-
MailShadowG is an application that will allow you to sync Outlook with Gmail. MailShadowG is a product of Cemaphore Systems , a California b... -
Dark designs can be really stunning. I mean, really . In Web 2.0 designers try to do their best to impress their visitors and in many cases ...
-
"Coming soon" pages are a great way to tide over your visitors until you finish your new website. They can be used as a teaser fo...
-
It’s quite easy to get stuck in creativity blocks, but it’s damn hard to get out of them. Particularly if you are out of time and don’t want...
-
If you are like me then, you definitely enjoy a good advertisment and also spread the word about that product or service. Even if is about c...
-
The Indian finance ministry has begun a public competition to select a design for the symbol of ...
-
We can all learn a lot from what those around us are doing. One thing I tell the clients I work with is if you can’t lead, then follow a lea...
-
I have used every one of these resources as a graphic designer and website developer and have hand picked all of these resources based on th...
-
BADGES Web 2.0 Badges - A set of free badges to download and use in your own designs. Fresh Badge - Quickly generate your own badge. adClu...
-
Navigation menus have really important role in any website. For big sites full with a lot of pages and articles, drop down menus and tabs ar...
Yahoo to lay off 1,000 workers
Wednesday, January 30, 2008
Yahoo Inc.'s financial funk deepened at the end of 2007, prompting the slumping Internet icon to draw up plans to lay off 1,000 workers.
The Sunnyvale-based company disclosed the upcoming 7 percent reduction in its 14,300-employee work force during a Tuesday conference call to review a 23 percent decline in its fourth-quarter profit.
Yahoo didn't specify which areas of its operations will be trimmed. Yahoo jettisoned 650 workers in the wake of the dot-com bust seven years ago. Management indicated further details will be released by mid-February.
"This is a necessary step in our transformation," Yahoo Chief Executive Jerry Yang said during the conference call.
Yahoo earned $205.7 million, or 15 cents per share, during 2007's final three months, a 23 percent drop from net income of $268.7 million, or 19 cents per share, at the same time in 2006.
Reflecting the gloomy aura hanging over Yahoo, analysts had prepared investors for even worse earnings erosion. The pessimism prompted analysts, on average, to project earnings of 11 cents per share for the period.
Revenue for the period totaled $1.83 billion, an improvement of 8 percent over $1.7 billion in 2006.
After subtracting commissions paid to its advertising partner, Yahoo's revenue fell to $1.4 billion, in line with analyst estimates.
Yang, who returned as chief executive seven months ago, signaled the company has challenges ahead.
"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," Yang said in a statement.
Excluding ad commissions, Yahoo estimated its revenue this year will range from $5.35 billion to $5.95 billion. The average analyst estimate stood at $5.92 billion, according to Thomson Financial.
Yahoo shares plummeted about $2.21, or more than 10 percent, in extended trading Tuesday after finishing the regular session at $20.81, up 3 cents.
Last year marked the first time Yahoo's earnings have dropped from the previous year since the company lost $93 million in 2001 during the aftermath of the dot-com bust.
Unlike in 2001, Yahoo hasn't stopped making money. But the company's 2007 profit fell 12 percent to $660 million even though advertisers spent more than ever on the Internet, where Yahoo still draws one of the Web's largest audiences.
The bulk of that additional ad revenue has been pouring into Internet search leader Google Inc., a company that was smaller than Yahoo just three years ago.
Yahoo has been struggling to attract teenagers and young adults who are gravitating to more trendy online hangouts like Facebook.com and News Corp.'s MySpace.com.
Tags:
Insights, Tech News
The Sunnyvale-based company disclosed the upcoming 7 percent reduction in its 14,300-employee work force during a Tuesday conference call to review a 23 percent decline in its fourth-quarter profit.
Yahoo didn't specify which areas of its operations will be trimmed. Yahoo jettisoned 650 workers in the wake of the dot-com bust seven years ago. Management indicated further details will be released by mid-February.
"This is a necessary step in our transformation," Yahoo Chief Executive Jerry Yang said during the conference call.
Yahoo earned $205.7 million, or 15 cents per share, during 2007's final three months, a 23 percent drop from net income of $268.7 million, or 19 cents per share, at the same time in 2006.
Reflecting the gloomy aura hanging over Yahoo, analysts had prepared investors for even worse earnings erosion. The pessimism prompted analysts, on average, to project earnings of 11 cents per share for the period.
Revenue for the period totaled $1.83 billion, an improvement of 8 percent over $1.7 billion in 2006.
After subtracting commissions paid to its advertising partner, Yahoo's revenue fell to $1.4 billion, in line with analyst estimates.
Yang, who returned as chief executive seven months ago, signaled the company has challenges ahead.
"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," Yang said in a statement.
Excluding ad commissions, Yahoo estimated its revenue this year will range from $5.35 billion to $5.95 billion. The average analyst estimate stood at $5.92 billion, according to Thomson Financial.
Yahoo shares plummeted about $2.21, or more than 10 percent, in extended trading Tuesday after finishing the regular session at $20.81, up 3 cents.
Last year marked the first time Yahoo's earnings have dropped from the previous year since the company lost $93 million in 2001 during the aftermath of the dot-com bust.
Unlike in 2001, Yahoo hasn't stopped making money. But the company's 2007 profit fell 12 percent to $660 million even though advertisers spent more than ever on the Internet, where Yahoo still draws one of the Web's largest audiences.
The bulk of that additional ad revenue has been pouring into Internet search leader Google Inc., a company that was smaller than Yahoo just three years ago.
Yahoo has been struggling to attract teenagers and young adults who are gravitating to more trendy online hangouts like Facebook.com and News Corp.'s MySpace.com.
Comments[ 0 ]
Post a Comment