As part of a significant restructuring, Yahoo intends to lay off more than 20% of its 8,600-person workforce.
The senior technology company is reorganizing its advertising department. Which will lose more than fifty percent of its personnel by the end of the year.
By the end of the week, about 1,000 employees would be affected by the layoffs.
Yahoo is the latest tech business to reduce jobs due to falling demand, inflation, and interest rates.
A representative for Yahoo told, “These decisions are never simple, but we believe these changes will simplify and improve our advertising business over the long term, allowing us to provide greater value to our customers and partners.
Yahoo, which has been owned by private equity firm Apollo Global Management since a $5bn takeover in 2021, stated that the decision will enable the company to concentrate its investment and focus on its DSP, or demand-side platform, advertising division.
Advertising changes
The layoffs are part of a larger effort to reorganize processes within Yahoo’s advertising division.
Due to record-high inflation and economic uncertainty, several corporations have cut marketing budgets.
The refocus indicates the company’s plan to cease competing directly with Google and Facebook’s Meta for digital advertising domination.
The Yahoo representative continued, “The new segment will be known as Yahoo Advertising.”
We will prioritize support for our top worldwide customers and relaunch dedicated ad sales teams for Yahoo’s owned and operated properties, including Yahoo Finance, Yahoo News, Yahoo Sports, and more.
According to a Thursday study, US layoffs hit a two-year high in January. In preparation for a recession, the technology industry laid off the second-most workers ever.
After the epidemic, companies including as Google, Amazon, and Meta are attempting to strike a balance between cost-cutting measures and the need to remain competitive, as consumer and corporate expenditures decline due to high inflation and rising interest rates.
Mark Zuckerberg, the CEO of Meta, described recent layoffs as “the most difficult moves we’ve made in the company’s history”. While Elon Musk, a multibillionaire who assumed control of Twitter in October, laid off over half of the company’s employees.
