Bartz and Yahoo cut 675 more workers in restructuring drive

by Stevie Smith - Apr 22 2009, 15:40

As her first quarter at the helm of Internet pioneer Yahoo Inc. comes to a close, CEO Carol Bartz is looking to continue her restructuring drive in order to cut operational costs after the company reported a 13 percent drop in Q1 revenue and profit.

As a result of its continuing poor fortunes, which hit near freefall after Microsoft Corp. walked away from a bitter acquisition bid in 2008, Yahoo has announced that it will cut some 675 jobs, which equates to around five percent of its total workforce.

In terms of contributory numbers, Yahoo’s revenue performance fell to $1.58 billion USD for the first three months of 2009, which is a drop of 13 percent when gauged against the $1.82 billion USD it posted during the same period in 2008. Notably, net income for the period plunged from $536.8 million USD in 2008 to just $118.7 million USD in 2009. 

Speaking in a Yahoo conference call, Bartz pledged to maintain the company’s focus and momentum for investing in various new initiatives that will hopefully help reverse areas of decline throughout its business.

News of Yahoo’s latest round of job cuts – it scythed off some 1,600 workers at the tail end of 2008 – comes soon after rumours that Yahoo CEO Carol Bartz and Microsoft CEO Steve Ballmer are presently in talks regarding a possible online advertising partnership designed to reduce the dominance of Google.

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