Yahoo releases Q3 earnings, expects 1500 layoffs in Q4
Yahoo has released its earnings report for the third quarter ended September 30.
Revenues were $1.786 billion for the third quarter of 2008, a 1% increase compared to $1.768 billion for the same period of 2007. Marketing services also increased 1%, to $1.563 billion from $1.544 billion in 2007.
The search engine also announced its expectation to reduce its workforce by at least 10% during the fourth quarter.
"As economic conditions and on-line advertising softened in the third quarter, we remained highly focused on our 2008 strategy to invest in initiatives that enhance not only our long term competitiveness, but also our ability to deliver for users and advertisers in this more difficult climate,” said Jerry Yang, co-founder and CEO of Yahoo, in a statement. “We have been disciplined about balancing investments with cost management all year, and have now set in motion initiatives to reduce costs and enhance productivity."
Operating income for the third quarter of 2008 decreased 53% to $70 million, down from $150 million for the same period of 2007.
Non-GAAP net income for the third quarter of 2008 was $123 million, or 9 cents per diluted share, compared to non-GAAP net income of $153 million, or 11 cents per diluted share, last year.
"Despite a tougher revenue climate, we were able to stay focused on our strategic objectives, launching several major product initiatives that have been underway for many months,” said Sue Decker, president of Yahoo, in a statement. “…We delivered on our product roadmap with high quality and lower expenses than originally anticipated. Now we are conducting a deep review of our cost structure to identify more opportunities to enhance efficiency and build a stronger and more profitable Yahoo.”