Yahoo’s financial report for the Q3 is out and despite reporting a not so bad financial conditions contrary to what was being predicted the past couple of days, the company is still set to reduce its work force by an equivalent 10% reduction on its payroll. That percentage is roughly equivalent to around 1,500 Yahoo workers who are about to lose their job.
Getting into the details of Yahoo’s Q3 Financial Highlights. Net income for the company is pegged at $54.3 million or 4 cents per share with a total revenue of $1.79 billion. Yahoo’s reported earning excluding charges is posted at 9 cents per share which despite of attaining its estimates is still a couple of percentage down from last year’s accomplishment for the same period which was $151.3 million or 11 center per share for a total revenue of $1.77 billion.
Now, these figures may not seem too bad and would seem that Yahoo is achieving its projected earnings and income, but that’s what you get for not projecting too achieve too much given its current market performance and market share.
Moving forward to the next quarter, Yahoo is now aiming to achieve $1.77 billion to $1.97 and is planning to cut expenses by about $400 million to $3.9 billion. Part of this expense cut will be coming from the 1,500 workers which it plans to lay-off.
With this bleak scenario for the company, Yahoo’s Jerry Yang remained confident that the company could still get by despite the slumping economy.
“The steps we are taking this quarter should deliver both near-term benefits to operating cash flow, and substantially enhance the nimbleness and flexibility with which we compete over the long term. We enter this slowing market with competitive advantages as the destination of choice for consumers and as a leader in providing online advertisers with the broadest set of advertising management tools and products in the industry. We plan to continue building on those strengths.”
Update: TechCrunch confirmed the Yahoo layoff via a letter sent by Jerry Yang to all Yahoo employees worldwide. Part of the letter says:
affected employees will be notified of layoffs in the next several weeks. we understand that hearing this news now creates uncertainty, but we are moving ahead in a way that balances speed with a clear focus on accomplishing what is necessary to set the organization up for long term success. going forward it will continue to be important for us to make the right decisions to keep our business efficient and strong.