New Delhi, Feb 10: Yahoo, one of the pioneers of the early internet era, announced on Thursday that it will lay off over 20% of its total workforce as part of a major restructuring of its ad tech division.
As per information, the layoffs will affect nearly 50% of Yahoo’s ad tech workers by the end of the year, including nearly 1,000 employees this week.
Yahoo, which is owned by private equity firm Apollo Global Management since a $5 billion buyout in 2021, would reduce the Yahoo for Business ad tech unit by almost 50 per cent or more than 20 per cent of the workforce at Yahoo by the end of 2023.
In an interview, Yahoo CEO Jim Lanzone said that the decision to cut jobs will be very beneficial to Yahoo’s overall profitability. Yahoo says the company is highly profitable and that the job cuts were the result of the division’s restructuring rather than the ad market issues.
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As a part of the restructuring plan, Yahoo will shut down its ad platform called Gemini. Yahoo will also outsource work to Taboola, an advertising platform that recently entered into a partnership with Yahoo. The company will also reportedly close its advertising business, known as SSP, or supply-side platform.
Yahoo has now joined the list of tech companies that have recently laid off their employees amid the post-boom economic slowdown caused due to the COVID-19 pandemic. Moreover, several tech companies like Infosys, Microsoft, and Twitter have recently announced similar moves in 2022 owing to over-hiring, uncertain global macroeconomic conditions and strong tailwinds.