Yahoo to axe 1,500 jobs

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Yahoo has said in its earnings call that it will axe 10 percent of its 15,000 employees in the company, or 1,500 employees, after the current financial crisis saw its share fall and loss revenue from last year, plunging to a 64 percent loss in profits. The cuts are expected to over $400 million from its $3.9 billion expenditure so it could keep going during the crisis.

The job cuts could also see jobs being replaced to lower paid contractors in other countries, or even closures of buildings in the U.S.

The crisis also saw its financial predictions change; with its estimated revenue for 2008 will be between $7.18 billion and $7.38 billion – down from predictions of $7.35 billion and $7.85 billion. Its shares managed to go up 7 percent in extended trading, after closing at 12.07 in regular trading.

However, the heat is still on Jerry Yang; who rejected a $33 per share bid from Microsoft by saying that Yahoo was worth more than what Microsoft was offering. The mass layoffs is the second for this year. But the effects are being felt around Silicon Valley, with eBay announcing layoffs as well and Google has decided to limit its spending.