Yahoo drop in profits means 700 will go

Sunnyvale (CA) – A fall in advertising revenues has resulted in Yahoo’s profit falling by 78 percent and that means 700 jobs will go at the company.

Revenues for its first financial quarter dropped 13 percent to $1.58 billion, while its net income fell to $118 million. In the same period last year, revenues amounted to $1.81 billion while net income was $537 million.

CEO Carol Bartz, brought in to shake up Yahoo, said that the 700 jobs or so that would be lost would not be across the board, but from specific business units.

Gossip continues that Yahoo is still in talks with Microsoft to create a strategic alliance on search technology but neither firm care to comment about such talks.

An alliance would certainly give rival Google a tiny migraine, but we doubt it would essentially change the search landscape.  Dominant Google, although affected by the global meltdown like every other company in the known universe, only has to sit tight in order to give both Yahoo and Microsoft an enormous splitting headache.