Yahoo is planning to lay off a sizable portion of its workforce in the coming months.
According to a recent Axios report, the company intends to lay off more than 20% of its workforce as it reduces its advertising business. The layoff is part of a major restructuring of Yahoo’s ad tech unit, affecting more than half of the company’s ad tech employees, or more than 1,600 people.
Yahoo CEO Jim Lanzone explained the decision, stating that the company’s revenue has declined due to increased competition in the advertising space. As a result, the company is streamlining its operations and cutting costs.
The layoffs are part of the company’s larger effort to streamline operations in Yahoo’s advertising unit. The Yahoo for Business segment’s strategy had “struggled to live up to our high standards across the entire stack,” according to a Yahoo spokesperson.
“Given the new focus of the new Yahoo Advertising group, we will reduce the workforce of the former Yahoo for Business division by nearly 50% by the end of 2023,” a Yahoo spokesperson said.
This latest round of layoffs follows a trend of tech and media companies reducing staff in order to remain competitive in a rapidly changing market. In recent years, companies like Yahoo have come under increasing pressure from larger tech behemoths that have dominated the advertising space, leaving smaller players struggling to stay afloat.
The decision was made in response to increased competition and declining revenue, and it exemplifies the difficulties that many technology and media companies face in today’s market.
The sources for this piece include an article in Axios.