Yahoo May Unveil Plans for New Nebraska Facility

Yahoo is expected to unveil plans to build a new facility in Nebraska on Friday, just days after the California-based Internet company announced it will cut at least 1,500 workers as it deals with the economic downturn.

A source with knowledge of the project confirmed Yahoo's plans on Thursday.

Nebraska Gov. Dave Heineman is scheduled to hold a news conference Friday morning in La Vista to announce an economic development project that would bring jobs to the state. Heineman's office wouldn't comment, other than to confirm Friday's news conference.

Earlier this year, Sunnyvale, Calif.-based Yahoo applied for the biggest slate of state tax breaks available in Nebraska to help set up some operations in La Vista.

If the company goes ahead with the project, within four years it would have to invest at least $100 million and create at least 50 jobs with a minimum average salary of $68,700.

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The news comes on heels of an announcement Tuesday that Yahoo will cut 10 percent of its employees, or 1,500 people, citing a 64 percent drop in its third-quarter profit.

Yahoo last laid off workers in February. In that round, about 1,000 workers were cut loose, but the company's payroll returned to the previous level within months.

Yahoo is bracing for a deep downturn likely to extend well into 2009 by trimming $400 million from its annual expenses of $3.9 billion.

Besides shedding 1,500 workers during the next two months, Yahoo may close some of its U.S. offices and assign more jobs to lower-paid contractors in other countries.

Shares of Yahoo rose 26 cents, or 2.1 percent, to $12.65 in Thursday trading.