As part of a significant staff reorganization, Yahoo intends to let go of more than 1,200 of its overall 8,600 employees.
The well-established technology business is in the process of reorganizing its advertising unit, which will result in the loss of more than half of the department’s employees by the end of the year.
By the end of the week, the layoffs will touch about a thousand different employees.
Yahoo is the most recent technology company to make the announcement that it will be cutting jobs as businesses continue to suffer in the face of a decrease in demand, increasing inflation, and rising interest rates.
According to a statement that was sent to the BBC by a representative of Yahoo, “These decisions are never easy to make, but we believe these changes will simplify and improve our advertising business for the long run.”
Apollo Global Management, a private equity firm, paid $5 billion in 2021 to acquire Yahoo. The company said that the decision would allow it to focus on and invest more in its DSP, which stands for “demand-side platform,” which is its most important advertising division.
The layoffs are part of a larger attempt by the firm to streamline processes in Yahoo’s advertising arm, which is why the company has taken this step.
This comes at a time when a significant number of advertisers have reduced the size of their marketing budgets in reaction to historically high inflation rates and ongoing worry regarding the possibility of a recession.
This shift in strategy indicates that the company intends to quit directly competing against other digital advertising powerhouses, such as Google and Facebook’s Meta.
The Yahoo spokesman continued, saying that the new section will be known as “Yahoo Advertising.”
“By redoubling our efforts on the DSP across all channels, we will prioritize support for our top global customers and relaunch dedicated ad sales teams for Yahoo’s owned and operated properties,” such as Yahoo Finance, Yahoo News, Yahoo Sports, and more.
According to a report that was released on Thursday, the number of people who lost their jobs in the United States hit a more than two-year high in January. This came as the technology industry, which was once a dependable source of employment, cut jobs at the second-highest pace on record in preparation for a potential recession.
Companies such as Google, Amazon, and Meta are currently grappling with the question of how to strike a balance between the need to reduce costs in order to remain competitive and the need to reduce costs in order to reduce costs. This comes after the pandemic caused consumer and corporate spending to decrease in response to rising inflation and interest rates.
Mark Zuckerberg, the CEO of Meta, described recent layoffs as “the most difficult changes we’ve made in Meta’s history.” Meanwhile, Twitter let off over half of its workforce after multibillionaire Elon Musk assumed control of the company in October.