03/28/2008 02:45 am ET Updated May 25, 2011

Yahoo Profits Sink; 1,000 To Be Laid Off

Facing rising competition and shareholder unrest, Yahoo Inc. on Tuesday took steps to reverse its flagging fortunes, including its first layoffs since 2001. The company plans to cut 1,000 jobs, or 7% of its workforce.

A lackluster fourth-quarter financial performance, including a 23% drop in profit, and a sober forecast for the coming year put even more pressure on the Internet giant.

Yahoo shares fell 10% in after-hours trading to $18.72 after Chief Executive Jerry Yang acknowledged that the company might have a tough 2008 as it attempts to mount a comeback that could take years.

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