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.”
