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

For the full year, Yahoo! reduced its revenue guidance to range between $7.18 to $7.38 billion, including TAC. That was down from its previous forecast of $7.35 billion to $7.85 billion, including TAC.

"As economic conditions and on-line advertising softened in the third quarter, we remained highly focused on our 2008 strategy to invest in initiatives that enhance not only our long term competitiveness, but also our ability to deliver for users and advertisers even in this more difficult climate," said Yahoo! CEO Jerry Yang in a statement.

"We have been disciplined about balancing investments with cost management all year, and have now set in motion initiatives to reduce costs and enhance productivity."

Shares of Yahoo! were up 4.2% to $12.58 in after-hours trading.