California based internet services giant Yahoo Inc to cut 10% of it's global work force (1500 workers) as it's last quarter profit falls due to world economic meltdown.

Yahoo reported a third quarter profit of $54.3 million, or 4 cents per share compared to $151.3 million, or 11 cents per share profit same period last year, a 64 percent decline on an year on year basis. Revenue rose 1 percent to $1.79 billion.

in January, Microsoft offered to buy the company for $49.6 billion, but Yahoo Inc rejected the offer. But many Yahoo investors were not happy with this decision. Instead Yahoo announced a plan to forge an advertising tie-up with it rival search engine Google.

Initial Microsoft offered US$44.6 billion and then increased by another $5 billion to $49.6, $33 per share. At that time Yahoo was trading around $28 per share. Buy Yahoo demanded $37 per share.

But now market value of Yahoo plunged more than 60% and trading at $12 per share as share markets across the globe crashed due to economic meltdown.

When Microsoft offered $49.6 billion market value of Yahoo was at 42 billion, but now it's market value is only 18 billion. This is a big blow to Yahoo management who turned down the offer irrespective of opposition from investors.