Yahoo! to Cut 1,500 Jobs

Yahoo! Inc. (YHOO: 10.80 -0.18%) announced today that it will hand out at least 1,500 pink slips to workers as it struggles to deal with a crumbling economy that ate away at its third-quarter profit.

The layoffs outlined in the announcement represent about a 10% reduction in Yahoo’s staff of about 15,000 employees. It is the second time in nine months that Yahoo has undertaken mass layoffs.

Business got much worse in the third quarter as Yahoo earned only $54.3 million, or 4 cents per share. That was a crash of nearly 65% from the $151.3 million it was bringing in at the same time last year.

The average earnings estimates from analysts was 9 cents per share.