Yahoo Net Income Drops As Layoffs Are Imminent
Yahoo’s fourth-quarter net income fell from $269 million a year ago to $206 million during the quarter just ended, while its revenue rose from $1.7 billion to $1.83 billion during the same period.
For the year, the company’s net income dropped from $751 million in 2006 to $660 million, while its revenue rose from $6.43 billion to $6.97 billion. The quarter and the year ended Dec. 31.
The income drop was the result of across-the-board increases in sales and marketing, product development and general expenses.
The company expects to cut around 1,000 employees from its 14,000+ workforce as part of an austerity move.
Yahoo CEO Jerry Yang acknowledged the rough financial picture, saying that the company’s investments would eventually allow it to capture a larger portion of the online advertising market. “While we will continue to face headwinds this year, we believe that the moves we are making will help us exit 2008 stronger and more competitive,” Yang said in a statement.
