As the country continues to try and find the upside in an economy that is in a tailspin, companies are finding that the times are too hard to continue business as usual. As a result, jobs are being cut and locations are being eliminated.

Yahoo! is the latest to report its performance woes. The Internet company has reported a decline in its profits from last year, yet matched market analysts’ expectations. Despite this performance, the company said it will cut 10 percent of its workforce.

Inside sources were quoted in both the San Jose Mercury News and The Wall Street Journal predicting that the cuts are expected to affect up to 1,000 people. Full details are still unknown and Yahoo! has so far refused to comment on the situation.

According to Yahoo!, it garnered a profit of 9 cents per share in the third quarter. This time last year, the company enjoyed earnings of 11 centers per share. Analysts surveyed by Thomson (News - Alert) Reuters expected Yahoo! to report income of 9 cents per share on $1.37 billion in net revenue.

According to a story posted by Crayton Harrison on Bloomberg (News - Alert).com, Yahoo! hired consulting firm Bain & Co. in September to review its costs. Yahoo! had 14,300 employees at the end of last year and experienced a round of 1,000 job cuts in January of 2008. Some in the industry expect the anticipated cuts to affect as many as 3,000.

Yahoo! is seeking to cut expenses as advertisers are cutting back on Internet promotions in this down economy. It is expected that the online advertising industry could lose $6.7 billion in business sue to collapsing credit markets.

For the most recent quarter, sales came in at $1.325 billion, an increase from $1.283 billion last year. These revenue figures exclude traffic-acquisition costs, as is customary with Yahoo! and a handful of other Internet companies.

Based in Sunnyvale, Calif., Yahoo! dropped 4 cents to $12.86 on Monday. The company’s shares have fallen 45 percent this year, which has pulled down Yahoo!’s market value to less than $18 billion. This dollar amount is substantially less than the $47.5 billion that Microsoft (News - Alert) offered for Yahoo! earlier this year.

In late trading on Tuesday, shares of Yahoo! rose about six percent. These shares settled 6.14 percent lower at $12.07 on the Nasdaq. Yahoo! shares shed 16 percent during the quarter.