Yahoo to lay off 20% of total workforce this week, more employees to be sacked later this year
Yahoo said it plans to lay off more than 20% of its total workforce as part of a major restructuring of its ad tech division. The cuts will impact nearly 50% of Yahoo’s ad tech employees by the end of this year, including nearly 1,000 employees this week, the company said.
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FollowOne of the pioneers of the internet, Yahoo, is the most recent computer business to lay off large numbers of workers in order to reduce costs in the face of a shaky global economy. According to media reports, the corporation would eliminate close to 1,000 positions, or around 12% of its staff. The reports further state that the business will send emails this week. Additionally, a business official informed the media that by the end of 2023, the Apollo Global Management-owned firm will eliminate more than 20% of the Yahoo for Business ad tech unit's personnel.
Yahoo CEO Jim Lanzone stated in an interview that the choice to reduce the workforce will "tremendously benefit the profitability of Yahoo overall." According to Yahoo, the business is "extremely successful," and the layoffs were caused by the division's reorganisation rather than issues with the ad market.
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Yahoo's Gemini advertising platform will close as part of the reorganisation plan. On the other side, Taboola, an advertising platform that just partnered with Yahoo, will receive work that Yahoo subcontracts. According to reports, the corporation will also close down its supply-side platform, or SSP, advertising division.
Yahoo is not the only digital giant, though, that is making tight efforts to optimise energy use and cut costs. According to a data tracker, January 2023 was the worst month for layoffs in the tech sector. According to data by Trueup.io, roughly 106,950 workers across various tech companies lost jobs last month, making it worse than the combined job losses in November and December 2023 (50,573 workers and 40,368 employees, respectively).
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According to the layoff tracker, IT behemoths including Amazon, Google, Microsoft, and Salesforce fired the most people worldwide last month. Although February is comparatively better than January, several businesses are mass-firing employees.
Also Read: Amazon layoff: Here's how much tech giant has to pay to sacked employees
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