In the first quarter of the year Yahoo missed it’s earning expectations. It wasn’t by a massive margin, but Yahoo had shed 1,500 of it’s workforce at the end of 2008. Yahoo’s profits were down by 78% on last years figure of $1.16 billion. The future isn’t looking brilliant for Yahoo although they are reportedly in talks with Microsoft about making a partnership, which will use Yahoo’s 20% and Microsoft’s 8% market share to compete with market leaders Google’s almost two third share.
However it isn’t just Yahoo that are showing a decrease, Google reported it’s first sales drop in the first quarter of this year. Rather than standing still and waiting for the economy to pick up companies are working hard to make themselves more appealing in this market.
Yahoo have announced they intend to let 5% of their workforce go. They are also working on globalizing its platform to react quicker, building ‘wow’ products on top of that platform and continuing to invest in new advertising products.
