Yahoo to Fire 1000 Employees this Week; More Layoffs over the Year

Yahoo, a pioneer of the internet era has decided to opt for mass layoffs to cut expenses. According to Bloomberg, Yahoo will fire around 1000 employees. They roughly constitute 12 per cent of Yahoo’s workforce. According to the report, the company is expected to issue the official letters of layoff to the employees this week.

Bloomberg also reported that the Yahoo for Business ad tech unit will also have its workforce reduced by almost 50 per cent or more than 20 per cent by the end of 2023.

In an interview with Axios, Yahoo CEO Jim Lanzone said that the decision to trim the staff will be “tremendously beneficial for the profitability of Yahoo overall.” Yahoo claimed the company is “very profitable” and the job cuts were due to the division’s restructuring rather than troubles in the ad market.

As a part of the restructuring plan, Yahoo will shut down its ad platform called Gemini. On the other hand, Yahoo will outsource work to Taboola, an advertising platform that recently entered into a partnership with Yahoo. The company will also reportedly shut down its advertising business, called its SSP, or supply-side platform.