by , 8:45 AM EST, January 30th, 2008

Internet giant Yahoo plans to cut 1,000 jobs by mid February following a substantial drop in its fourth quarter earnings. The company hopes the cuts will reduce losses while it focuses on growing specific parts of its business, according to The New York Times.

Yahoo reported a 23 percent drop in earnings compared to the same quarter a year ago from US$269 million down to $206 million.

The company plans to focus on its advertising technology, and parts of its Internet portal including the front page, search services, email, personalized home page features, and news, finance and sports.

Investors hoping to see a quick turn around in the company, however, are likely to be disappointed. Yahoo CEO Jerry Yang warned investors of "head winds" in 2008, and that revenue growth would likely fall at the low end of, or below, analyst expectations.