Layoffs, Cost-Cutting Measures For Yahoo?
The Sunnyvale, Calif.-based Internet company, which employs about 14,300, is expected to disclose plans by Tuesday, when it reports third-quarter earnings. The exact number of jobs to be eliminated remains unknown, though the amount should exceed the more than 1,000 that Yahoo announced in January, when the company began cutting costs and trimming operations.
Sanford C. Bernstein analyst Jeffrey Lindsay expects Yahoo to report overall weak performance in the third quarter with net revenue of $1.39 billion, up 8.7% from the previous year, compared to consensus of $1.37 billion, or 7% year-over-year growth. The equity research firm said in a note that Yahoo's U.S. search share declined again in third quarter 2008 to 14.5% of all searches, down from 15.5% sequentially, and 18.3% in the year-ago third quarter.