Yahoo! Sees Global Profits Tumble

Yahoo! has announced global profits of $54 million for the third quarter of the year, down from $151 million for Q3 2007.

Pre-tax profits outside the US fell 7% to $119m while US pre-tax profits were down 14% year on year to $291m.

The internet company also said it will cut costs by $400 million from its annual expenses of $3.9 billion in the next few months, while chief executive Jerry Yang announced plans to cut 1,500 jobs.

Yang said: “The steps we are taking this quarter should deliver not only near-term benefits to operating cash flow, but should also substantially enhance the nimbleness and flexibility with which we compete over the long term.”

Earlier this year, Yahoo! turned down a $44 billion takeover bid from Microsoft although it has since signed a search advertising deal with Google.

However, this deal is currently under investigation by the US Justice Department (see Google And Yahoo! Deal Delayed).

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