It would seem even the major search engines are affected by the recent downturn in the economy.

Yahoo! Inc, cut 2,400 jobs last year leaving them with 13,600 jobs in Dec 08, but now it would seem more jobs are going to be cut as a way of dealing with the slow growth the company is currently enduring.

The job cuts are likely due to people spending less money on advertising. Companies such as Yahoo! rely heavily on selling advertising space and since the credit crunch hit people are spending less on advertising as they simply cannot afford it.

This has a negative impact on all major search engines, but especially those are heavily displayed to advertising.

Since there is no significant improvement in the economy, the company is left with no choice except to tighten up on costs which is taking the shape of downsizing which may affect several hundred employees.