Yahoo, the internet company, announced that it would lay off 20% of its employees by the end of this year to restructure its advertising unit.
This move is just one of many layoffs happening in the tech and media industries.
A spokesperson from Yahoo told THOUSIF Inc. – WORLDWIDE that the company’s advertising division, Yahoo for Business, will be transformed into a new division called Yahoo Advertising.
This change will result in nearly 50% of the division being cut, including nearly 1,000 employees this week.
However, the spokesperson from Yahoo said that these changes would simplify and strengthen the advertising business and enable the company to provide better value to its customers and partners.
Yahoo CEO Jim Lanzone told in an interview: These changes will be “tremendously beneficial” for the profitability of Yahoo and allow the company to invest more in other profitable parts of its business.
Changes will be “tremendously beneficial” for the profitability of Yahoo.Jim Lanzone
The announcement of these layoffs comes as many tech and media companies are cutting costs due to decreased digital advertising spending and uncertainty in the global economy.
Yahoo, once a leader in the internet industry in the 1990s, has struggled to keep up with the changing times as Google became the dominant search engine.
On the other side, social media platforms such as Facebook, Instagram, and YouTube have become popular online destinations.
In 2021, private equity firm Apollo Global Management bought Yahoo for $5 billion from Verizon, which had acquired the company in 2017.