According to Yahoo, the company is looking to cut back spending by US$400 million internationally following the release of its third quarter report stating that quarterly profits have dropped 64 per cent while its revenue has increased by only one per cent to $1.79 billion from the same period last year.
The results prompted the announcement of 1,500 staff lay-offs by the end of the year.
According to a Yahoo Southeast Asia spokesman, the local team “doesn’t have a lot of details” on how the cut-backs will affect them in the region but expects more news to come out Yahoo’s headquarters in the upcoming weeks.
“It’s sad but with everything related to the economic meltdown, Yahoo is not immune. It’ll just have to take the best steps in order to go forward,” he said. “It’s not clear geographically where staff is going to be cut but the company will look to minimise redundancies.”
However, he added that he is hopeful the effects will be less severe in Southeast Asia because Yahoo has historically been a strong performer in the region, saying: “Overall, the Southeast Asia business has been pretty successful over the past three to four years and we look to continue investing in products and services across all our offices.”
Further update
