Yahoo said it will cut 1,000 jobs in February as it announced profits fell 23 percent in its fiscal fourth quarter.

It said Tuesday that net income for the quarter ended Dec. 31 fell to $206 million, or 15 cents a share, from $269 million, or 19 cents a share, for the year-ago period. Stock-based compensation and other expenses contributed to the decline. Operating income for the quarter fell 38 percent to $191 million from $308 million a year ago.

Revenues climbed 8 percent to $1.8 billion from $1.7 billion a year ago. Marketing services, which includes online advertising revenue, climbed 7 percent to $1.6 billion from $1.5 billion. And revenue from Web sites owned by Yahoo grew 23 percent as sales on affiliate sites rose 13 percent.

Yang Points to Future

Yahoo co-founder and CEO Jerry Yang said that is a pivotal instance for the business, and the company has an opportunity to construct investments that

will help it capture a significant piece of the growing ad market and create long-term value for its shareholders.

“We are executing aggressively against Yahoo’s three big strategic priorities and that hard work is starting to bear fruit, as evidenced by the 20 percent year-over-year growth in O&O marketing services we achieved in the fourth quarter,” Yang said. “While we will continue to face headwinds that year, we believe that the moves we are making will help us exit 2008 stronger and more competitive and return to higher levels of operating cash flow growth in 2009.”

Yahoo President Sue Drucker said the steps Yahoo has taken by the the past year represent fundamental changes to virtually every aspect of Yahoo’s business. She expressed confidence that they will drive Yahoo’s growth.

“Even as we increase investment in key areas of our business, we’re making fit but essential decisions to streamline…

Orginal post by Top Tech News