W4CA Network

Global recession also has effected one of big international company, such as Yahoo. On Tuesday Yahoo said that it will displace 1,500 employees and more or about 10% of the workforce for reducing costs.It will be done in the fourth quarter.

Actually, at the end of the third quarter, about 15,200 employees work for Yahoo.

Jerry Yang, the CEO said that Yahoo has to  balance the cost management and investments. Therefore, enhancing productivity and reducing costs have to be done.

Beside cut off the number of the workers, Yahoo also will consolidate real estate and relocate offices.  

In September 30, Yahoo’s revenue was about $1.79 billion. This amount is more than a year ago which was about $1.77 billion.

Thomson Reuters ever predicted that Yahoo’s commissions paid for its partners is $1.37. However, this prediction is wrong because only $1.33 billion was posted by Yahoo.

How about its net income? If we compare with the situation a year ago, the net income of Yahoo decreased 51 %. It is only 4 cents per share or about $54 million.

However, if we compare with Yahoo, Google seems to be luckier. Last week, Google reported that the profits increased. The growth of  Google is also strong although Google has to face with global economic problems.