LONDON (Brand Republic) - Yahoo! has reported a net loss for the first quarter of 2001 and is to lay off 12% of its 3,510 staff as it struggles with slowing advertising revenue.
Yahoo! revealed it would make a number of other cost-cutting moves, including reducing its marketing spend and cutting back some of its online services. The company did not reveal details of areas that would be affected, but decisions will be made in 30 days, according to analysts.
In the last two months, Yahoo! cut its revenue predictions for the quarter twice. In the end, it came in at $180.2m (£125.46m), beating its own predicted range of $170m-$180m (£118.36m-£125.32m), and analysts’ predictions of $172m (£119.75m).
Its net loss on a pro-forma basis, including special items, was $11.5m (£8.01m), but most analysts are concentrating on the $0.01 profit per share, excluding non-recurring items.
The slowing advertising market was just one of Yahoo!’s problems during the quarter, as its CEO Tim Koogle stepped down from his post, and a number of other top executives left the company.
Yesterday, Heather Killen, senior vice-president of international operations, added to the vacancy list by announcing she is to leave the company in June. She will continue as a board member of Yahoo! Europe and Yahoo! Korea.