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To: Jon K. who wrote (989)	11/15/2001 7:36:04 PM
From: Jon K.	Read Replies (1) \| Respond to of 29596

Yahoo to Cut Jobs, Aim for Non-Ad Revenue Audio/Video Yahoo at $30? Analysts Debate Yahoo's Value - (Yahoo! Finance Vision) ONtheClose: Market ends mixed, airlines soar while oil slips - (ON24) SUNNYVALE, Calif. (Reuters) - Internet giant Yahoo! Inc.(Nasdaq:YHOO - news) on Thursday said it would cut 300 jobs and move to generate at least half its revenues from sources outside advertising by 2004 as it struggles to convert its base of some 210 million users into a profitable business. The move marks the second round of job cuts by Yahoo this year, cutting its work force of about 2,900 by some 10 percent after eliminating 365 jobs earlier in the year. Chief Executive Terry Semel, a former Hollywood executive who was brought in earlier this year to re-work Yahoo's business model, told analysts at a meeting at company headquarters that he expects advertising to account for between 50 to 60 percent of total sales by 2004, down from about 76 percent this year. Internet advertising has been in sharp decline in the past year because of the economic slowdown and the collapse of the dot-coms. Yahoo has an audience of some 210 million regular users but has not figured out how to collect money from most of the individuals who regularly visit its site to read news, shop or surf the Internet. ``There's nothing wrong with ad revenue but we will be quite diversified away from that,'' Semel said. Semel said he hoped to achieve a ``direct billing relationship'' -- through subscriptions and other transactions -- with 10 million Yahoo users in a ``reasonable'' period of time. Shares of Yahoo fell 21 cents or 1.38 to $15.00 in afternoon trade on Nasdaq. Yahoo's extensive content has helped propel it to become the world's No. 3 Internet media network, behind rivals AOL Time Warner Inc.(NYSE:AOL - news) and Microsoft Corp.'s(Nasdaq:MSFT - news) MSN network. Yahoo President Jeff Mallett told analysts at the meeting that the company would cut about 400 jobs, mostly in international and broadcast operations and middle management, but would also add staff in promising areas, resulting in a net reduction of 300 jobs. Semel last month, with the release of third-quarter results, had said that Yahoo would cut an undisclosed number of jobs as part of a reorganization designed to drive profitability. Mallett on Thursday said Yahoo will also eliminate some services on its site, including lifestyle, small business and business-to-business marketplace features. On Wednesday. Yahoo announced a deal with the No. 2 U.S. local phone company, SBC Communications Inc (NYSE:SBC - news). , to develop a co-branded high-speed Internet service which could help it sell more media-rich features like music and movies. But while AOL and Microsoft have already made heavy investments in gaining access to high-speed distribution links via phone or cable television lines, Yahoo had remained focused on its stable of Web media programming. Yahoo last month reported a third-quarter loss of $24.1 million and said revenues fell more than 40 percent to $166.1 million and cut its revenue forecasts for the fourth quarter and the full year. It said it could meet existing operating profit goals for the year by reining in costs. The company forecast fourth-quarter revenue of between $160 million to $180 million, lower than the then-prevailing Wall Street estimates $190.8 million. It said it saw full-year revenues of $688 million to $708 million, below the then-held consensus of $720.4 million. Yahoo also said in October that it expected to report a full-year operating profit of 5 cents a share, which was in line with then-current analyst estimates. Email this story - View most popular \| Printer-friendly format