Yahoo Job Losses Higher Than Expected

In the wake of disappointing third quarter figures, Yahoo has said it will lay off 10% of its workforce, around 1,500 people.

At the beginning of the week it was estimated that Yahoo would be laying off around 1,000 staff. But in the wake of disappointing third quarter figures it was revealed that the company is likely to let around 10% of its staff go, which will be around 1,500 people, as well as contractors.

Yahoo’s profits of $54.3 million were down 64% over last year, due to lower consumer spending thanks to the credit crunch.
Yahoo CEO Jerry Yang said: "The steps we are taking this quarter should deliver not only near-term benefits to operating cash flow, but should also substantially enhance the nimbleness and flexibility with which we compete over the long term.”

Yahoo employs about 2,000 contractors, and it’s expected that many of them will be let go as the company explores ways to cut costs, which may even include selling some property, Vnunet has reported.

Yahoo shares rose slightly on news of the job cuts.