Yahoo! Revenue Falls; 10% of Jobs to Be Cut

SAN FRANCISCO - Yahoo!(YHOO Quote) took another belt-tightening move Tuesday when it announced plans to reduce its workforce by at least 10% in the fourth quarter.

The announcement came as Yahoo! delivered a third-quarter earnings report that matched Wall Street estimates but fell short of revenue expectations.

The job cuts, part of a plan to reduce costs, will result in the elimination of 1,520 positions from Yahoo's total of 15,200, according to the Associated Press. The workforce reduction comes on top of the 1,000 job cuts it announced in January.

The company said its goal is to reduce its current annualized cost run rate of approximately $3.9 billion by more than $400 million before the end of 2008.

Yahoo! reported third-quarter profit fell to $54 million or 4 cents a share, from $151 million, or 11 cents a share, a year ago in the same period.

Excluding special items, Yahoo! said it earned 9 cents a share, in line with Wall Street estimates.

Revenue climbed to $1.79 billion, a 1% increase from $1.77 billion a year ago. Excluding traffic-acquisition costs, which is the portion of revenues shared with partners, Yahoo! posted a total of $1.33 billion, falling short of the Street's estimate for $1.37 billion.

For the fourth quarter, the company said it expected revenue of $1.77 billion to $1.97 billion (including TAC), and operating cash flow of $490 million to $570 million. The Street had estimated earnings of 14 cents a share on revenue of $1.51 billion (excluding TAC).