To restore the company’s fortunes in front of decreasing profits, Yahoo has announced to shed around 1,500 jobs that are 10% of its global workforce.
The company reported a 64% slump in third quarter profits. Yahoo announced 54.3million net profit in 3Q, while it was $151.3m in the same period last year.
Yahoo has rejected a buyout offer from Microsoft earlier this year.
These new results from Yahoo are worse than expected, as its revenues increased just 1% compared to $1.79bn (a year earlier).
Under chief executive Jerry Yang leadership, the company has been fighting throughout this year to maintain its independence.
During January this year, Microsoft offered $47.5bn to buyout the company, but Yahoo refused that offer, saying Microsoft undervalued the company.
Then Yahoo announced to develop an advertising tie-up with Google and this plan is still being studied by competition regulators.
Because of considerable decrease in profits, it is the second big job cut announcement during nine months and according to some analysts many Yahoo investors are not happy with the company’s decision of not accepting $47.5bn Microsoft’s offer.
Global financial crisis and increasing economic slowdown made things bad to worse and now it seems that Yahoo may feel attraction anywhere near that figure. Similarly, company’s possible tie-up with search giant Google will also play a vital role to decide its fate.