Yahoo Earnings Reveal Widespread Layoffs

Yahoo! Inc.'s (YHOO) third-quarter earnings [pdf file] were generally in line with lowered analyst expectations. The company reported non-GAAP net income of $123 million, or 9 cents a share, on revenues of $1.3 billion excluding traffic acquisition costs.

More important, Yahoo! announced layoffs. The company will cut 10% of its global workforce of 15,200, or roughly 1,500 jobs, in the fourth quarter. The company said the goal is to reduce its current annualized cost run-rate of $3.9 billion by more than $400 million by year's end.

Separately, Yahoo! and Google Inc. (GOOG) both denied a report on TheDeal.com that the companies may be ready to scrap their proposed search advertising partnership. In a statement, Google said the company is "continuing to have cooperative discussions with the Department of Justice about this arrangement and agreed to a brief delay in implementing the agreement while those discussions continue."

A Yahoo! spokeswoman also said the companies remain in discussions with Justice, but declined to elaborate.

By David Shabelman