Page last updated at 21:28 GMT, Tuesday, 21 April 2009 22:28 UK

Yahoo cuts jobs after profit fall

Sign at Yahoo headquarters
Yahoo said the company is for sale at the right price

Yahoo saw its profits fall sharply in the first three months of 2009 and will cut 5% of its workforce as a result of the disappointing performance.

The internet firm made $118m (£80.4m) in the first quarter, down 78% from the $537m it made a year earlier, largely due to falls in advertising revenue.

Revenue shrank by 13% to $1.58bn as advertisers were reluctant to commit.

The internet firm said it would cut between 600 and 700 jobs to save money during the economic downturn.

The results are the first full quarter figures achieved under the leadership of chief executive Carol Bartz.

Her appointment early this year followed a search for a replacement for the internet portal's co-founder Jerry Yang.

His departure followed lengthy criticism of his stewardship of the company, which has coincided with its share price collapsing to about $12.

He angered investors by turning down a $47.5bn takeover offer from Microsoft last May - worth $33 a share.

Microsoft did however come back and offer to buy the search part of Yahoo, but a deal was never struck.

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