Yahoo Cuts Jobs, Profits Rise

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Yahoo has announced its results for Q3, which saw net income almost triple to reach the $186 million mark, a figure that might well be a touch misleading.

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The BBC is reporting that, despite a 12% drop in revenue to $1.58 billion, Yahoo’s total profit did indeed triple, thanks in no small part to cost cutting measures introduced by CEO, Carol Bartz. It’s well worth noting that Yahoo’s operating expenses were stripped down by $169 million since last year, so the rise in net income to $186 million seems as though it may very well be attributable in large part to those cuts.

The problem is that, despite managing to make more money than in the same period as last year, just about everything else has taken a hit for Yahoo. As we said above, total revenue was down by 12%, but similarly, revenue minus traffic acquisition costs were down by 14%.

While Yahoo isn’t really in the search engine business anymore, its search engine took a fairly serious hit, with revenue from search having dropped by nearly 20% since last year. Of course, now that Microsoft’s Bing is powering Yahoo’s search, there’s an awful lot behind that number to take into account.

It’s strange to see a company post a tripling of its own income and to then see that it’s pretty much all bad news. If you’re interested to read more about just what Yahoo is doing in an attempt to grow traffic then you should take a look at the BBC’s article on it, where they talk about the recently launched web portal and the $100 million dollars worth of marketing Yahoo is sinking into it.

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