The outfit warned that revenue will again slide this quarter as it bleeds traffic to Google and Facebook. It had been hoped that its deal to shove Bing under the bonnet of Yahoo would be a quick fix for the company.
However, Yahoo reported its third consecutive quarter of declining page views on its websites. CEO Carol Bartz, who was hired to turn the portal around, is under pressure to actually do something as the company is turning Titanic.
She is certain that revenue growth will return in 2011's second half once its tie-up with Microsoft takes off.
In the wake of the losses Yahoo has responded by telling more staff to clean out their desks. It is the second time in six weeks Yahoo has let staff go. This round of redundancies made up a percent of its global workforce.
Bartz said that Yahoo was "getting momentum", although analysts have said that she always says that even while the company is tanking. In fact the question they have been asking is which direction the momentum is going.
Yahoo is still one the most popular destinations on the Web and the No. 1 provider of online display ads in the United States so it is not quite clear what is going wrong.