Yahoo’s profit rises amidst job cuts
Internet Giant Yahoo recorded a 12% increase in its third quarter profits, much to the agony of the huge number of employees fired in the last 12 months. Amongst the top four software companies yahoo registered the maximum number of layoffs last year with about 2000 jobs being slashed. On the other hand it earned $186m (£113.6m) compared with $54m in the same period last year.
Yahoo has been constantly trying to launch new features in its web portal supported by huge advertising campaigns. This drive has been a result of falling revenues (although profits have risen) & lesser advertiser interest in their product. The top executives are quite confident & hopeful with their growth strategies & are expecting revenue of $1.6 billion to $1.7 billion in the fourth quarter. Well, that is obviously what any company would say after staging layoffs & then realizing profits.
Unlike Google, Yahoo has had to face ominous situations which resulted in drastic cost reducing measures. In July, Microsoft and Yahoo agreed a deal that will see Yahoo’s websites use both Microsoft’s search technology and search advertising. Yahoo in turn will become the sales team for banner advertising for both companies. However, the deal still awaits regulatory approval and is not expected to be finalized before spring 2010.