Yahoo has revealed it will axe a further 700 jobs after it said its net income fell 78 percent to $118 million in Q1 2009.

Chief executive Carol Bartz blamed the global economy for the loss of profits saying Yahoo is "not immune to the ongoing economic downturn".

Bartz, the former executive chairman of software company Autodesk, was announced as Jerry Yang's replacement in January.

The job losses come after the internet company announced it way laying off 1,500 members of staff late last year as part of a cost-cutting exercise.

Yahoo also said it estimates revenue for Q2 to be between $1.425bn and $1.625bn.