Yahoo cutting jobs, costs after matching first-quarter estimates

Yahoo, second to Google in online searches, said it will cut jobs by 5 percent and seek other ways to bring down costs because of slower advertising sales.

"Yahoo is not immune to the ongoing economic downturn," Carol Bartz, Yahoo chief executive officer, said in the company's earnings release today. The company experienced "pressure in both display and search advertising" in the first quarter, she said.

Yahoo, which will cut 600 to 700 jobs, matched analyst estimates in the last quarter, ended March 31, and sees higher sales in the current quarter, which ends in June.