Yahoo profits plummet by almost 80 percent
While competitor Google is doing brilliantly, things are looking critical for Yahoo: After another decline in profits and sales, the Internet company is cutting around five percent of all jobs worldwide. This third round of cuts will affect around 700 of the 13,500 employees.
While competitor Google is doing brilliantly, things are looking critical for Yahoo: After another decline in profits and sales, the Internet company is cutting around five percent of all jobs worldwide. This third round of cuts will affect around 700 of the 13,500 employees.
The Group is also planning further major cost reductions, as Yahoo CEO Carol Bartz, who has been in office for around 100 days, said at a press conference on Tuesday evening.
Bartz promised that the new job cuts would be targeted and not based on the "lawnmower method" as was the case recently. Last year, Yahoo cut a total of 2,400 jobs. Immediately after taking office in January, Bartz launched a corporate reorganization and caused a major shake-up in management. While Google was recently able to increase its advertising revenue by five percent, Yahoo's revenue fell by 13 percent to just under 1.6 billion dollars. Google primarily runs text advertising around its search function.
Yahoo generates the majority of its revenue from banner advertising. Google is benefiting in particular from its size during the crisis. Many advertising customers currently seem to be concentrating their tighter budgets on the leading platform.
Yahoo's consolidated profit fell by almost 80 percent to 118 million dollars in the first quarter. However, the Group had achieved a high one-off profit a year earlier. For the current quarter, outgoing CFO Blake Jorgensen expects sales of between 1.43 and 1.63 billion dollars. The operating profit is expected to reach 80 to 90 million dollars.
The Group is also planning further major cost reductions, as Yahoo CEO Carol Bartz, who has been in office for around 100 days, said at a press conference on Tuesday evening.
Bartz promised that the new job cuts would be targeted and not based on the "lawnmower method" as was the case recently. Last year, Yahoo cut a total of 2,400 jobs. Immediately after taking office in January, Bartz launched a corporate reorganization and caused a major shake-up in management. While Google was recently able to increase its advertising revenue by five percent, Yahoo's revenue fell by 13 percent to just under 1.6 billion dollars. Google primarily runs text advertising around its search function.
Yahoo generates the majority of its revenue from banner advertising. Google is benefiting in particular from its size during the crisis. Many advertising customers currently seem to be concentrating their tighter budgets on the leading platform.
Yahoo's consolidated profit fell by almost 80 percent to 118 million dollars in the first quarter. However, the Group had achieved a high one-off profit a year earlier. For the current quarter, outgoing CFO Blake Jorgensen expects sales of between 1.43 and 1.63 billion dollars. The operating profit is expected to reach 80 to 90 million dollars.
