Yahoo is to cut at least 10% of its workforce in cost-cutting measures following poor financial results from the most recent quarter.

The company has seen a 64% drop in profit to $54.3 million, or 4 cents a share, from $151.3 million, or 11 cents, a year earlier.

More than 1500 employees will lose their jobs in the fourth quarter in an effort reduce costs.

An email to all Yahoo staff from company CEO Jerry Yang has been leaked, revealing the head honcho's take on the matter - and how he broke the bad news to staff. All in lower case, it reads:

"today as part of our q3 earnings release, we said that our goal is to reduce our current annualized cost run rate of roughly $3.9 billion by more than $400 million before the end of 2008."

"we are targeting non-headcount expenses wherever possible, such as facilities and outside services. however, because compensation expenses are the single largest part of our costs, we anticipate a reduction of at least 10% of our global workforce by year-end."

"affected employees will be notified of layoffs in the next several weeks. we understand that hearing this news now creates uncertainty, but we are moving ahead in a way that balances speed with a clear focus on accomplishing what is necessary to set the organization up for long term success. going forward it will continue to be important for us to make the right decisions to keep our business efficient and strong."

"having layoffs is very difficult, particularly in light of all we’ve experienced this year. but we don’t take these decisions lightly, and are committed to treating affected employees fairly, offering severance and outplacement services."