Yahoo to incur about $27 Million charges for lay-offs

Bangalore: The Internet major Yahoo is all set to incur about $22 million to $27 million in the current quarter related to the previously announced layoffs of five percent of its employees.

Two months after the CEO Carol Bartz's announcement to cut nearly 700 jobs, Yahoo detailed the charges in a regulatory filing to the US Securities and Exchange Commission on Friday. The company also said that it will take pretax charges between $30 million and $34 million in severance pay expenses and related cash expenditures.

Yahoo said the charges will be offset by a credit of $7 million to $8 million in stock compensation expense reversals due to forfeited stock-based awards, resulting in total restructuring charges between $22 million and $27 million.

Amid a challenging economy and tough competition from Google and Microsoft, Bartz attempts to push Yahoo back to growth. According to comScore, Yahoo is the number two search engine in the U.S. with 20.1 percent market share in May as compared to Google's 65 percent share and Microsoft's eight percent share before its launch of Bing (a new search engine).