Yahoo Profits Fall Further

Internet search giant Yahoo have today announced a strong decline in profitability over the last three months, following tougher conditions for its advertising-driven business model amidst the current market climate and declining market share against its leading competitor Google.

Profits were down by 23% when compared to last year’s results, reflecting a decline in performance over the period from profits of $268.7 million down to just $205.7 million as measured at the end of December compared with the results of 2006, as it continues to lose out in the battle for online search engine market share with Google.

The news today was coupled with the announcement that 1,000 further employees were to lose their jobs, despite the fact that there has as of yet been no disclosure as to where the lossed may arise. In a bid to cut back on costs in order to boost profitability, the news sees yet further bad news at the troubled search giant that was, once upon a time, at the top of its game.

“While we will continue to face headwinds this year, we believe that the moves we are making will help us exit 2008 stronger and more competitive and return to higher levels of operating cash flow growth in 2009″, said company chief executive Jerry Yang.

He further added that Yahoo stood to experience further difficulites over the course of 2008 as advertisers reign in their marketing spend to reflect the current credit-tight market climate.

With the cuts coming from somewhere across its 14,300 strong staff, there has as of yet been no indication as to where the cuts may arise and within which departments they will fall.

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