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Yahoo warns of weak revenue

Yahoo warns of weak revenue
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Internet portal Yahoo has warned that revenue will again slide this quarter as it continues to lose market share to Google and Facebook.

Yahoo reported its third consecutive quarter of declining page views on its websites but promised revenue growth will return in the second half of this year as its search partnership with Microsoft takes off.

At the same time Yahoo announced another round of layoffs – its second in six weeks – of about one percent of its global workforce. In contrast, rival Google said 2011 will be its biggest year of hiring ever.

Yahoo has struggled to contain costs and jump-start revenue growth, but CEO Carol Bartz said it was committed to investing for growth and defended the company’s progress.

“I will not back down on the fact that we are getting momentum,” Bartz said defiantly when an analyst contrasted the company’s declining revenue with executives’ claims of progress.

“There is a lot going on here,” she said, citing new features in the company’s Web search product and the successful combination of Yahoo’s search advertising service in the United States and Canada with Microsoft in October.