Internet giant Yahoo has reported a drop of 78 percent in the first three months of the year. The group has decided to cut around 600 more jobs, representing almost five percent of its worldwide workforce.Yahoo! on Tuesday reported that its net profit slumped nearly 80 percent in the first three months of the year and that it will trim its workforce by five percent.Yahoo! said its net income for the first quarter was 117.6 million dollars, or eight cents per share, compared to 536.8 million dollars, or 37 cents per share, during the same period last year."Yahoo! is not immune to the ongoing economic downturn, but careful cost management in the first quarter allowed our operating cash flow to come in near the high end of our outlook range," said Yahoo! chief executive Carol Bartz."With our leading audience properties, substantial reach and innovative advertising solutions, we are confident Yahoo! will be well positioned when online brand advertising resumes its growth," she added.In a statement, Yahoo! said it expects to "reduce its number of current employees worldwide by approximately five percent" to "allow flexibility for accelerated strategic investments and targeted hiring in its core operations."Workers being cut from the payroll will get word during the coming two weeks, according to the Sunnyvale, California-based Internet pioneer."Yahoo!'s balance sheet remains strong, and we are continuing to generate free cash flow which provides us the flexibility to make strategic investments in key talent, platforms, products and infrastructure, even during this economic downturn," said Yahoo! chief financial officer Blake Jorgensen.Yahoo!'s earnings were in line with analyst expectations and the firm's stock price climbed about five percent to 15.03 dollars in after-hours trading that followed the release of the earnings report.
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