Yahoo is expected to distribute pink slips to at least 1,000 of its employees by Tuesday, according to a report from Mercury News. On that same day, the search company is also set to announce its third quarter earnings, with analysts estimating an average of 8 cents per share for the period ending September on $1.37 billion in net revenue. The estimate compares with the 11 cents a share and net revenue of $1.28 billion posted during the same period last year.
The layoff would make Yahoo the second Internet giant to shed employees. In October, eBay shed off 10 percent of its workforce.
The outlook for search business remains upbeat after Google said that its net income for the period ending in September rose to $1.35 billion, or $4.24 per share as compared to $1.07 billion in the same period last year.
Search companies contend that advertisements would continue to migrate online because of the present economic environment. The question of the day is whether Yahoo can beat estimates and provide value to its shareholders. Maybe another round of buyout offer from Microsoft may do it.