Yahoo has revealed it will axe a further 700 jobs after it said its net income fell 78 per cent to US$118 million in Q1 of 2009.
Chief executive Carol Bartz blamed the global economy for the loss of profits saying Yahoo is “not immune to the ongoing economic downturn”.
Bartz, the former executive chairman of software company Autodesk, was announced as Jerry Yang’s replacement in January.
The job losses come after the internet company announced it way laying off 1,500 members of staff late last year as part of a cost cutting exercise.
Yahoo also said it estimates revenue for Q2 to be between $1.425bn and $1.625bn.
Yahoo’s profit and revenue fell sharply in the first quarter, ended March 31, 2009, as the beleaguered Internet company added a softening online ad market to its list of woes.
Yahoo had a revenue of US$1.58 billion, down 13 percent from the first quarter of 2008 but higher than the $1.20 billion consensus expectation from analysts polled by Thomson Reuters.
On a pro forma basis, which excludes certain one-time items, Yahoo had net income of $206 million, or $0.15 per share, down 16 percent and 17 percent, respectively, compared to the first quarter of 2008 but exceeding by seven cents per share analysts’ expectation.
Bartz said the company “experienced pressure” in display and search advertising, but added that Yahoo will benefit from the recovery of brand advertising when it happens.
“We believe Yahoo remains one of the most compelling advertising buys on the Internet,” said Bartz, who took the helm of the company in January.
(With reports from Juan Carlos Perez)