Yahoo said on Thursday it would cut 20% of its total workforce by the end of this year as it restructures its advertising unit, just the latest example of layoffs ripping through the tech and media industries.
A Yahoo spokesperson told CNN that the company’s former ad technology division, Yahoo for Business, will be revamped and transformed into a new division called Yahoo Advertising.
As part of that shift, Yahoo plans to cut nearly 50% of the division this year, “including nearly 1,000 employees this week,” the spokesman said.
“These decisions are never easy, but we believe these changes will simplify and strengthen our advertising business in the long term, while allowing Yahoo to deliver more value to our customers and partners,” the spokesperson said in a statement. .
Axios, which was first to report the news, said the job cuts will affect more than 1,600 people in total. Yahoo did not immediately respond to a request for comment on the matter.
Yahoo CEO Jim Lanzone told Axios in an interview that these changes will be “hugely beneficial to Yahoo’s overall profitability” and allow the company to “attack” and invest more in other profitable parts of its business.
The announcement comes as a growing number of technology and media companies are cutting costs to adjust to a downturn in digital advertising spending amid broader uncertainty in the global economy.
Once synonymous with the Internet itself for much of the 1990s, Yahoo struggled to find relevance in subsequent decades as Google dominated search and social media platforms like Facebook, Instagram and YouTube replaced it as top online destinations.
Apollo Global Management, a private equity firm, acquired Yahoo in 2021 for $5 billion from Verizon, which bought the company in 2017.
Source: CNN Brasil
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