The Sunnyvale Web portal said it would carry out the layoffs, the third round in just over a year, in the next two weeks in hopes of saving money and freeing resources to hire elsewhere in the company. Executives said the cuts will be focused on Yahoo’s product managers and engineers.

After three months on the job, CEO Carol Bartz is still grappling with turning Yahoo around in an environment in which advertisers are slashing their budgets. Although she’s made some relatively minor tweaks at the company, Bartz is still weighing several bigger decisions such as whether to team up with rival Microsoft Corp. in search advertising.

Against that backdrop, Yahoo’s first-quarter profit fell 78 percent to $118 million (8 cents per share), from $537 million (37 cents) a year ago. The comparison isn’t quite as dire as it seems, however, because Yahoo’s quarterly earnings in 2008 were helped by a $401 million gain from an investment in Alibaba, a Chinese e-commerce company.

Absent those proceeds, Yahoo’s first-quarter profit would have declined 16 percent.

First-quarter revenue fell 13 percent to $1.58 billion from $1.82 billion for the equivalent period in 2008. Yahoo attributed some of the decline to the sale of its Kelkoo shopping search engine and unfavorable foreign currency exchange rates.

Excluding fees paid to partners, Yahoo would have had $1.16 billion in revenue.

The results met analyst expectations of 8 cents per share in profit and $1.2 billion in adjusted revenue.

Sameet Sinha, an analyst with JMP Securities, said that Bartz has made clear that Yahoo’s revival is no short-term project. The longer it takes, he said, the more pressure she’ll be under to reach an agreement with Microsoft, which has been Yahoo’s on-again, off-again suitor for more than a year.

“Carol Bartz is in there making some significant changes, but she said that it’s not one or two quarters of changes,” Sinha said. “There’s still a long way to go.”

Yahoo cut 1,000 jobs in January 2008, and trimmed 1,500 more in October. An announcement about the new cuts was widely expected Tuesday after leaks to the media last week.

Bartz said she hoped she could make Yahoo more streamlined, in part by reducing some of its inefficiencies in its workforce.

“We sort of had one product management person for every three engineers, so we had a lot of people running around and telling engineers what to do.” Exasperated, she used some of the salty language that she’s known for, but that is rarely heard in conference calls with investors, declaring “But nobody was f- doing anything.”

“Excuse me, I knew that would slip out one of these times,” she said.

Yahoo had 13,500 employees at the end of the first quarter.

Bartz has eliminated several of Yahoo’s minor services, continuing a process started under her predecessor, Jerry Yang, and is contemplating more significant changes. Career site HotJobs is a candidate for sale while Yahoo Maps may be outsourced to another company, analyst Trip Chowdhry of Global Equities Research said in a recent research note.

Last week, Yahoo sold its 10 percent stake in Gmarket, a South Korean e-commerce site.

Bartz has said she wants to focus Yahoo on its core properties, where it is already successful, including its home page, e-mail and finance.

Meanwhile, Yahoo continues to feel the impact of the economic downturn. Display advertising revenue dropped 13 percent. Search advertising revenue fell 3 percent, reversing double-digit growth in previous quarters.

Yahoo’s results contrasted with Google, which is facing some of the same economic headwinds, but nevertheless reported a 6 percent increase in first-quarter revenue.

Bartz said that she is pleased with how Yahoo performed in the first quarter under difficult circumstances and that she expects the business to turn around with the economy.

Yahoo to lay off 675 after profit slides 78%

Here’ a short list of ways to make money online..

Contextual advertising

• Contextual advertising is one of the most popular method of monetizing the web. You earn every time a viewer or a visitor clicks on the ads on your site. Earnings will depend on the amount the advertiser is willing to pay for every click (PPC) or impressions made {CPM). The more visitors you have the more likely you will be able to earn. Click here to learn more…

Revenue sharing

• Revenue Sharing Website allows registered members of the website to share the revenue made by the site, With this model you can almost start immediately without any overhead. All you need to do is to contribute to site. It can be Forum postings, Article submissions and many more.. click here to learn more…

Ad Space

• Not the Ad space on a billboard, but something similar, only instead of a high visibility and high traffic areas. It’s a high traffic websites or a high pagerank (PR) website. Unless you have a good traffic and high PR, you will have a hard time to attracting advertisers. But there are services that can help you sell ad space, click here to learn more…

Affiliate Marketing

• You earn by referring or selling products, earnings will vary and will depend on the action taken. With this model you don’t even need a website, you can use emails, and many other methods, click here to learn more…

Paid Blogging

• Get paid for blogging. Write about web sites, products, services, and companies and earn cash for providing your opinion and valuable feedback to advertisers. If you have good writing skills then this is for you. Click here to learn more…

Freelancing

• Freelancing or Outsourcing, If you are skilled enough you can easily make money here. There are a lot of sites where you can sign up as a freelancer and bid on projects. click here to learn more…

Sell Online

• Buy and Sell products online, with so many tools online you can even start selling immediately. Click here to learn more.

Paid to surf (Get paid to)

• You earn by clicking banners, ads, doing surveys, reading emails and many more. It may sound simple and anybody can do it, click here to learn more…