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(April 12, 2001) -- In a widely rumored move, Yahoo!, one of the Internet's leading media companies, cut 12% of its staff as part of a broader round of cost-cutting initiatives that also includes the closing of some secondary services and cut backs in some expenditures, including marketing and promotion.

All told, a total of 420 employees will leave the company.

The announcement of layoffs was made during the company's reporting of its first-quarter earnings. The company surpassed Wall Street's lowered expectations, reporting net revenues of $180 million for the quarter. That number is substantially off what Yahoo! reported a year ago, when net revenues were over $230 million. The company also had its second consecutive net loss of $11.5 million.

Separately, the Santa Clara, Calif.-based company said that Heather Killen, Yahoo!'s senior vice president-international operations, will leave the company in June. A number of top Yahoo! managers have leftin the past few months, and only some of those positions have been filled. The company is still searching for a new CEO. The current Yahoo! chief, Tim Koogle, has said he will step down when a replacement is named.

Yahoo! shares were trading at $15.86 in midday trading. -- Catharine P. Taylor

Copyright April 2001, Crain Communications Inc.

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