NEW YORK - Yahoo, a search engine proclaimed it would suspend 1,000 employees till mid-February, yet it reported its earnings of fourth quarter on Tuesday that beat prospects.

Jerry Yang chief executive, during the conference call by company with the analysts notify that this year yahoo faces “headwinds” and confirmed about soon to be coming layoffs, that are being into rumors for past some time.

Yang further said that the company will be making job cuts as a part of “workforce realignment”.

The sales of yahoo appeared in at around $1.8 billion with 8% increase previous year. According to roughly estimates by Thomson Call, the yahoo shares excluding the sales concerning advertising with the partners, company has reported $1.4 billion revenue, in line along with the expectations of the Wall Street.

Company reported $206 million net income or per share about 15 cents, beating the forecast of analysts for per share 11 cents.

For full year, the revenue of yahoo, without involving ad sales that the company shares with its partners, that came to be in at around $5.11 billion. The full year gain of yahoo was 10% increase $4.13 billion by from 2006.

Also, Yahoo said that it expects the annual revenue of 2008, not included in it are the sales with its partners, anywhere starting $5.35 to $5.95 billion. Before the reports came, Wall Street was expecting the sales to be $5.9 billion.

In written statement Yang said “While we will continue to face headwinds this year, we believe that the moves we are making will help us exit 2008 stronger and more competitive and return to higher levels of operating cash flow growth in 2009”.