Yahoo! to cut 5% jobs; Q1 net dips 78%

Internet giant Yahoo! will reduce global workforce by five per cent and has reported a 78% decline in net income in the first quarter amid slacking advertising revenues.

The company has posted a net income to $118 million in the first quarter ended March 31, 2009, against $ 537 million in the corresponding year ago period.The revenue decreased by 13% to $1.58 billion in the quarter from $1.81 billion in the year ago period.
   
"Yahoo! expects to reduce its number of current employees worldwide by approximately five per cent. The majority of impacted employees are expected to be notified within the next two weeks," the company has said in a statement.

The company has a significant presence in India and has about 1,500 employees in the country. In 2008, Yahoo!'s global headcount was about 15,000.
    
The company's marketing services revenues from owned and operated sites were $872 million for the first quarter of 2009, a 10% dip from $966 million in the same quarter last year.

"The decrease was driven by a three per cent decline in search advertising revenue and a 13% decline in display advertising," it added