The economic crisis is affecting a number of domains, and internet companies are not an exception. Internet giant Yahoo is one of the companies that has been said to be contemplating job cuts. Apparently, Yahoo is experiencing an increase in market share loss, in favor of the biggest online competitor today, Google.

Jerry Young, a co-founder and CEO of Yahoo, was even pressured into resigning by some of Yahoo’s investors. According to him, Yahoo had been struggling with balancing investments and cost management. As a result, the company’s officials decided to reduce costs and enhance productivity.

The most recent information confirms that Yahoo will let go about 10% of their staff, which adds up to a whopping 1,520 people who will remain jobless in a country facing severe economic decline and where stable, well-paying jobs which offer health care benefits are sparse, to say the least. Yahoo hopes to achieve a significant cost reduction without affecting their profits.

Yahoo has already let go of 1,000 of their employees earlier this year, in January. The personnel cuts add to a total of 16% of the staff.

In another attempt to reduce costs, yahoo has announced it will relocate a number of its offices. Officially, Yang said they were trying to find more effective means of functioning.

Yahoo’s losses did not surprise the analysts who correctly approximated to how much the loss would amount to. The company is, unsurprisingly, blaming the economy for their weakening business. Despite their market share decrease, Steve Ballmer (Microsoft’s CEO) announced that his company was still interested in Yahoo, or at least parts of the company.