Yahoo, as expected, is going to fire another roughly 700 people, 5% of its workforce, in the next couple of weeks.

CEO Carol Bartz, there now about a hundred days, said the cuts wouldn't be like the across-the-board ~10% cuts Yahoo did in Q4 in response to the macro environment. These are going to be more like scalpel cuts to streamline the corporate structure and its product portfolio. There has already been talk of whole units falling to the blade.

Figure Yahoo will go from about 13,500 people to roughly 12,800. Bartz indicated there would be hiring in specific areas.

The announcement came when Yahoo reported its Q1 results.

Income was down - ouch! - 78% to $117.6 million, eight cents a share, from $536.8 million this time last year on revenues down 13% to $1.5.8 billion, facts that were attributed to the great economic downturn, the gutting of Detroit and Wall Street and less spending on display advertising. Excluding traffic acquisition costs (TAC) Yahoo's revenue was $1.16 billion.

Yahoo and Microsoft are reportedly talking again in an attempt to come to some kind of accommodation but have yet to get down to the short strokes. Yahoo not seeing a bottom might encourage it to deal. Its search ads were down 3%.

Yahoo has $3.7 billion in the bank.