SAN FRANCISCO (AP) - Yahoo Inc. expects to report $33 million to $38 million in charges related to layoffs it announced earlier this week, the company said in a regulatory filing.
In a filing with the Securities and Exchange Commission Friday, Yahoo said that the charges, which it plans to report mostly in the fourth quarter, are for severance and other costs.
Yahoo predicted these charges will be offset somewhat by a credit of between $4 million and $6 million related to the laid-off workers’ stock option expenses.
Sunnyvale-based Yahoo said Tuesday that it would cut its work force by 4 percent as it laid off 600 employees. The cuts followed weeks of speculation about whether a long-running financial funk would spur Yahoo to trim its payroll before the new year. Reports of Yahoo’s layoff plans surfaced a month ago on two popular technology blogs, TechCrunch and All Things Digital.
This marks the fourth time in three years that Yahoo has resorted to mass firings to boost its earnings.
The company is under pressure to cut costs because its revenue has risen by less than 2 percent so far this year. CEO Carol Bartz has also promised to increase Yahoo’s operating profit margin to as much as 24 percent by 2013. The margin stood at about 12 percent through the first nine months of this year.
Yahoo Inc. shares fell 6 cents to $16.32 in after-hours trading. The stock finished regular trading down 13 cents at $16.38.
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