Yahoo’s net profits were down 64% in Q3 to $54.3 million, four cents a share. This time last year it realized $151.3 million, 11 cents a share.

Revenues were up 1.1% to $1.79 billion, excluding TAC it was $1.325 billion, short of the $1.37 Wall Street estimated. US sales were up 7% and international down 12%.

It says it’s going to lay off at least 10% of its people, roughly 1,500 souls, in the next few weeks.

Of course it said that in January but the number on its employee roster didn’t stay down and there are those who think 1,500 this time through isn’t enough.

Longer-term Yahoo’s talking about consolidating facilities, improving procurement and standardizing its global technology platforms,

It wants to cut $400 million in costs before the end of the year.

Yahoo CEO Jerry Yang thinks the layoffs are going to make the company more nimble and flexible.

It’s forecasting Q4 gross revenues of $1.77 billion-$1.97 billion, only a 2% gain down from the mid-teens. That means it would seen revenues for the whole year somewhere between $7.18 billion and $7.38 billion where it had been forecasting $7.35 billion to $7.85 billion three months ago.

It confessed its “disappointed” and blamed the economy and softening advertising demand.

Internet display advertising is down and Yahoo doesn’t seem to know how to make money from displays ads.

In this respect it’s still hoping Google will come to its rescue provided it can get over the Justice Department hump.

Stockholders may cite different reasons.