In a bid to cut costs and ensure adequate growth rate, internet giant, Yahoo Inc. has decided to freeze salary hikes of its employees for the financial year 2009.

The company, visibly upset over low revenue and falling profit, would also employ some other cost cutting measures to keep costs in line with revenues and to mitigate the impact of global slowdown on its business.

Yahoo! has taken the decision after the appointment of Carol Bartz as its new Chief Executive, to face various challenges posed under the impact of global slowdown. She may announce more layoffs to control worsening financial condition of the company.

A Yahoo spokesperson, Kim Rubey informed, "Based on the current economic environment and our focus on keeping costs in line with revenues, we have decided that providing annual salary increases would not be in the best interests of the company or our shareholders."

Rubey confirmed that salary freezing would continue throughout the financial year. Company's total employees' strength stands at 15,000, according to the data compiled in 2008. Its financial results for the fourth quarter are likely to be announced on Tuesday.

It should be recalled that many companies are facing the heat of worsening economic conditions and doing their best galvanize their business from its impact. Car firm Avis Budget Group Inc., technology entity Advanced Micro Devices and engine manufacturer Cummins Inc. has already taken such measures to slash expenses.