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Yahoo Is Having An Especially Bad Quarter

Key Speakers At The Bloomberg Tech ConferenceKey Speakers At The Bloomberg Tech Conference
Marissa Mayer, president and chief executive officer at YahooPhotograph by David Paul Morris — Bloomberg via Getty Images

(Reuters) – Yahoo estimates revenue to drop nearly 15% and earnings to fall by over 20% in 2016, Re/code reported on Wednesday.

The financial situation at the Internet company is becoming “increasingly dire,” Recode said, citing some pages from the “book” that Yahoo bankers have given out to prospective buyers.

Yahoo also expects the employee count to fall to about 9,000 at the end of 2016 from 10,500 in 2015, but stock-based compensation remains steady, the technology news website added.

The company expects revenues, backing out traffic acquisition costs, to decline to $3.5 billion in 2016, Re/code said.

Yahoo (YHOO) could not be immediately reached for a comment.