Yahoo Inc.’s financial funk deepened at the end of 2007, prompting the slumping Internet icon to draw up plans to lay off 1,000 workers.The Sunnyvale-based company disclosed the upcoming 7 percent reduction in its 14,300-employee work force Tuesday while reviewing a 23 percent drop in fourth-quarter profit and a cautious 2008 outlook. The bad news sent Yahoo shares skidding to their lowest levels in more than four years.
In a prepared statement, Yahoo Chief Executive Jerry Yang warned of looming “headwinds,” indicating that the company’s tortuous turnaround efforts aren’t likely to pay off this year.
Yahoo shares dropped $2.13, or more than 10 percent, in extended trading Tuesday after finishing the regular session at $20.81, up 3 cents. The company’s market value has plunged more than 50 percent since the end of 2005, wiping out $35 billion in shareholder wealth.
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