As part of a significant restructuring, Yahoo intends to let go of more than 20% of its 8,600 employees.
The seasoned IT giant is restructuring its advertising division, which by year’s end will have lost more than 50% of its staff.
By the end of the week, the reductions will affect close to 1,000 workers.
As businesses battle a decline in demand, increasing inflation, and higher interest rates, Yahoo is the current technological company to announce job reductions.
An official statement read: “These judgements are never simple, but we hope these changes will clarify and improve our advertising business in the long term while allowing Yahoo to provide more value to our consumers and partners.”
In addition, the decision would allow Yahoo, which has been run by “private equity firm Apollo Global Management” since a $5 billion takeover in 2021, to focus more on its core advertising business, known as DSP, or “demand-side platform.”
The industry’s efforts to improve efficiency in Yahoo’s marketing division are included in the layoffs.
As a result of historically high inflation rates and ongoing concerns about a downturn, several advertisers have reduced their advertising budgets.
The company’s goal to avoid directly vying for supremacy in digital advertising with companies like Google and Facebook’s Meta is indicated by the refocusing.
As the once-reliable technology sector cut employees at the second-highest rate ever to prepare for a potential downturn, job cuts in the US reached a more than two-year high in January, according to a report released on Thursday.
Following the epidemic, individual and commercial spending is declining amid high inflation and higher interest rates, and businesses like Amazon, Meta, and Google are now attempting to strike a balance between cost-cutting strategies and the need to stay competitive.