SAN FRANCISCO - Yahoo! ( YHOO) 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).
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.