Yahoo! plans layoffs, a sign of ad weakness

Yahoo! (YHOO) may eventually benefit from a deal to combine its search business with Microsoft (MSFT), but for the time being the company is in trouble.

Word has leaked out the the portal company will fire several hundred more people on top of the 2,000 or more that it pushed out last year. The news is a clear indication that Yahoo!'s revenue in the first quarter was bad and that it expects upcoming quarters to be tough.