Internet firm rescues share prices; axes ten per cent of employees

Yahoo cuts jobs

Despite reporting a decline in quarterly profits, Yahoo’s share prices rose eight per cent after the company announced it would be cutting ten per cent of its 15,000 strong workforce, reports Reuters.

The move comes after a slew of redundancies in February, when the firm cut seven per cent of its jobs, approximately 1,000. Chief financial officer Blake Jorgenson saying that Yahoo would be prepared to take the measures further if the economy continued to decline.

A number of other Silicon Valley based companies have also made similar cuts as a reaction to the economic climate.

Yahoo is replacing these losses by hiring extensively from lower wage areas such as Eastern Europe, India and Asia.

Yahoo’s net income for the third quarter dropped from $151 million to $54 million, which the company’s president Susan Decker attributed to a decline in advertising spending across the US, Europe and Asia.

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