Yahoo Posts $1.58 Billion Q1 Loss and Announces Job Cuts

As Yahoo posts big drops in revenue and profits, the CEO Carol Bartz has announced plans to cut nearly 700 workers from its payroll to stay afloat in the continued battering economy.

Yahoo met analysts estimates with revenue falling $1.58 billion in Q1 of 2009, down 13% from a year earlier.

"Yahoo! is not immune to the ongoing economic downturn, but careful cost management in the first quarter allowed our operating cash flow to come in near the high end of our outlook range," said Yahoo! chief executive officer Carol Bartz. "While we experienced pressure in both display and search advertising in the first quarter, we believe Yahoo! remains one of the most compelling advertising buys on the Internet. With our leading audience properties, substantial reach and innovative advertising solutions, we are confident Yahoo! will be well positioned when online brand advertising resumes its growth."

"Yahoo!s balance sheet remains strong, and we are continuing to generate free cash flow which provides us with the flexibility to make strategic investments in key talent, platforms, products and infrastructure, even during this economic downturn," said Yahoo! chief financial officer Blake Jorgensen. "We also are making selective adjustments to our spending to accelerate those strategic investments."

Yahoo! will host a conference call to discuss first quarter 2009 results at 5:00 p.m. Eastern Time today. An audio replay of the call will be available for one week following the conference call by calling (888) 286-8010 or (617) 801-6888, reservation number: 29476596.