Yahoo Announces Job Cuts

Saying that the company faces a tough year, Yahoo CEO Jerry Yang has confirmed the company will be cutting 1,000 jobs as the company fights to restore profits and regain its competitive edge. Yahoo currently employes about 14,300 people; Yang did not disclose where the job cuts would hit.

Yahoo’s quarterly financials (PDF) reveal that fourth quarter profits at the Internet giant have fallen 23 percent to $205.7 million, compared to $268.7 million for the same period a year ago.

“While we will continue to face headwinds this year,” Yang wrote in a statement, “we believe that the moves we are making will help us exit 2008 stronger and more competitive and return to higher levels of operating cash flow growth in 2009.”

The possibility of job cuts at the Internet company first surfaced last week. Yahoo earns most of its money from online advertising, and has been competing against the likes of Google, an increasingly-aggressive Microsoft, as well as online advertising efforts of AOL.