Yahoo expects 2016 revenue to drop about 15 percent

Yahoo expects a sharp decline in both its revenue and earnings this year compared with 2015, with revenue seen falling nearly 15 percent and earnings over 20 percent, Re/code reported on Wednesday, citing a Yahoo document. The financial situation at the Internet company is becoming “increasingly dire,” Recode said, citing pages from the “book” of disclosure documents that Yahoo bankers have given out to prospective buyers. A Yahoo spokesperson declined comment on the report. Yahoo also expects its employee count to fall to about 9,000 at the end of 2016, from 10,500 in 2015, but stock-based compensation remains steady, the technology news website said. The company expects 2016 revenue, backing out traffic acquisition costs, of $3.5 billion in 2016 and earnings before depreciation, taxes and amortization of $750 million, Re/code said. Earlier this years,  Yahoo had said it would sharpen its focus on news, sports, finance and lifestyle. The company said it would consider “strategic alternatives” for its core Internet business and cut about 15 percent of its workforce. Yahoo had also announced it will lay off 107 employees in the first of what is expected to be more than 1,500 job cuts. Reuters