Yahoo Inc announced that it would cut 675 jobs, which equals to 5 percent of its workforce, in order to cope with the current economic situation. The company announced that it plans to cut jobs after making public a report according to which its revenue in the first quarter dropped 13%. 

 

Yahoo!’s first quarter profit fell 78 percent to $118 million (8 cents per share), from $537 million (37 cents) a year ago.

 

The company’s new Chief Executive Officer, former Amazon.com-CEO Carol Bartz, pleased Yahoo! investors by cutting costs, including 1,600 jobs in December. However, apart from that, the Internet giant did not said how it plans to turn the situation in its favor besides waiting for the economic recession to pass. 

 

Sunnyvale-based Yahoo said it plans to carry out the job cuts in the next two weeks. It decided to cut jobs in order to save money and free resources to invest in other sectors of the company. Yahoo also specified that the job cuts will focus mainly on the company’s product managers and engineers.

 

Carol Bartz probably would have wished to have taken the helm of Yahoo! amid better economic times, but so far she has been struggling to turn around the new company she is in charge of. Bartz already implemented some of her own changes at the company, but at the same time she has been weighing a much bigger change: a possible team up with Microsoft Corp.