Yahoo to cut 10 percent of its workforce

In an attempt to restore the companyÔÇÖs fortunes in the face of declining profits, Yahoo plans to cut about 1,500 jobs, 10 percent of its global workforce. ┬á The US internet group made an announcement as it reported a 64 percent decrease in third quarter profits. YahooÔÇÖs net profit for the third quarter was $54.3 million, compared with $151.3 million a year earlier. ┬á Back in January, Yahoo quickly turned down a takeover from Microsoft who offered to buy the firm for $47.5 billion. Yahoo rejected the offer saying that it undervalued the company. ┬á In the early summer of this year, Microsoft returned with a joint takeover offer from itself and investor Carl Icahn, who owns 5 percent of YahooÔÇÖs shares. Under the new proposal, Microsoft would have bought YahooÔÇÖs search engine while Icahn would have ended up with the rest of the business. ┬á Yahoo rejected this offer as well, and instead announced plans to implement an advertising tie up with larger search engine rival Google. The plan is still being studied by competition regulators on both sides of the Atlantic. ┬á As this cutback is YahooÔÇÖs second major job cut announcement in nine months, analysts say that YahooÔÇÖs rejection of the $47.5 billion Microsoft deal will upset Yahoo investors. ┬á With the global financial crisis and economic slowdown, analysts say it seems very unlikely that Yahoo could now attract anywhere near that figure. ┬á But, co-founder and chief executive Jerry Yang said the latest job cuts would strengthen the firm. ÔÇ£I believe getting Yahoo more fit at this time will provide the flexibility necessary for navigating current conditions and strengthen our position for the future,ÔÇØ he said.