Internet services major Yahoo Inc. has decided to close its Briefcase online storage service, having Web 1.0 capacity of 30MB, from March 30. The move is aimed to reduce costs by closing some operations in the midst of global financial crisis and tight liquidity conditions prevailing in the world.

The development came after the appointment of Carol Bartz as it Chief Executive, who is doing her best to control tough situation caused due to slump in online advertisement, a major source of revenue of Yahoo!

Yahoo's Briefcase, a free service offered by company to upload files as big as 5MB and organize them in folders, is in operation for last 10 year. The company has asked users to close or delete their files through a greeting message in the opening page of web link.

Kim Rubey, Yahoo's spokesperson said, "Usage has been significantly declining over the years as users outgrew the need for Yahoo! Briefcase and turned to offerings with much more storage and enhanced sharing capabilities." He further said, "Discontinuing the service will allow us to focus our efforts on more broadly used products."

The company feels that large numbers of customers are shifting toward its e-mail program or the Flickr photo site and other online storage services, leading to decline in its revenue from Briefcase.

It should be recalled that that Yahoo! has already announced to freeze pay of its employees besides retrenchment of workforce, in a bid to control worsening financial condition of company.