Yahoo Chopping 1,000; Premium Music Threatened

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Yahoo officially announced plans to trim 1,000 workers on Tuesday, a number that falls below earlier estimates.

Yahoo cofounder and chief executive Jerry Yang announced the reductions during the latest earnings call, one that revealed a substantial fourth quarter profit drop.

For the period, profits dipped to $205.7 million, or $0.15 per diluted share, down 32 percent from year-ago figures of $268.7 million, or $0.19 per diluted share.  Profits for the entire year reached $660 million, or $0.47 per diluted share, compared to $751 million, or $0.52 per diluted share for 2006.

During the call, the company did not detail specific cuts, though president Susan Decker alluded to reductions in “premium music,” a category that includes the subscription-based Yahoo Music Unlimited.  A number of other properties were also mentioned, and Yang promised that the company was certainly “not tinkering around”.  The turbulent “multi-year transformation” comes alongside serious strides by heavyweights like Google, Facebook, and MySpace, all destinations that are draining once-core Yahoo users.