As part of a significant restructuring, Yahoo intends to lay off more than 20% of its 8,600-person workforce.
The senior technology company is reorganizing its advertising department, which will lose more than fifty percent of its personnel by the end of the year. By the end of the week, about 1,000 employees would be affected by the layoffs.
Yahoo Mass Layoffs
Yahoo is the most recent technology company to announce job cuts amid a decline in demand, increasing inflation, and rising interest rates.
These decisions are never simple, but we believe these changes will simplify and improve our advertising business over the long term, allowing Yahoo to provide more value to our customers and partners, a Yahoo spokeswoman told the BBC.
Yahoo, which has been owned by private equity firm Apollo Global Management since a $5bn acquisition in 2021, says that the decision will allow the company to concentrate its investments and concentrate on its DSP, or demand-side platform, advertising segment.
It comes at a time when many companies have reduced their marketing budgets due to record-high inflation rates and ongoing economic uncertainties.
The refocus indicates the company’s plan to cease competing directly with Google and Facebook’s Meta for digital advertising domination.
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Yahoo’s New Company
This new company, known only as Yahoo Advertising, will soon begin operations. Relaunching dedicated ad sales teams for Yahoo’s owned and controlled properties will be one of our key priorities as we step up our efforts on the DSP on an omnichannel basis. Yahoo Finance, Yahoo News, Yahoo Sports, and numerous other websites are among these properties.
In the United States, the number of people who lost their employment in January rose to its highest level in more than two years, according to a report that was published on Thursday.
The number of people who lost their jobs in the technology industry, which was once a reliable source of employment, cut jobs at the second-highest pace on record in order to prepare for the possibility of a recession.
Companies such as Google, Amazon, and Meta are currently struggling to find a balance between the need to decrease costs to remain competitive and the need to cut costs to reduce costs.
This is a result of the pandemic, which decreased consumer and corporate expenditure in reaction to rising inflation and interest rates.
Twitter let off over half of its workforce when multi-billionaire Elon Musk gained control of the company in October. Chief Executive Officer Mark Zuckerberg of Meta stated that recent employment cutbacks were the most challenging changes we’ve made in Meta’s history.
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