Yahoo to put off 20% of its workforce

CNN
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Yahoo stated Thursday that it’s going to minimize 20% of its complete workforce by the top of this yr because it restructures its promoting unit, simply the most recent instance of the layoffs spreading all through the tech and media industries.

A Yahoo spokesperson advised CNN that the corporate’s legacy advert tech division, Yahoo for Business, shall be overhauled and reworked into a brand new division known as Yahoo Advertising. As a part of that change, Yahoo plans to chop practically 50% of the division this yr, “including nearly 1,000 employees this week,” the spokesperson stated.

“These decisions are never easy, but we believe these changes will simplify and strengthen our advertising business for the long run, while enabling Yahoo to deliver better value to our customers and partners,” the spokesperson stated in an announcement.

Axios, which was first to report the information, stated the job cuts will influence greater than 1,600 folks in complete. Yahoo didn’t instantly reply to a request for touch upon the matter.

Yahoo CEO Jim Lanzone advised Axios in an interview that these modifications shall be “tremendously beneficial for the profitability of Yahoo overall,” and can permit the corporate “to go on offense” and make investments extra in different elements of its enterprise which can be worthwhile.

The announcement comes as a rising variety of tech and media firms are reducing prices to regulate to a pullback in digital promoting spend amid broader uncertainty within the international economic system.

Once synonymous with the web itself for a lot of the Nineties, Yahoo struggled to seek out relevance in subsequent many years as Google dominated search and social media platforms like Facebook, Instagram and YouTube changed it as main on-line locations.

Apollo Global Management, a personal fairness agency, acquired Yahoo in 2021 for $5 billion from Verizon, which had purchased the corporate in 2017.