Yahoo Reduces 20 percent of Workers
Yahoo, once a giant in the world of internet search and email, announced on Thursday its plans to lay off over 20% of its total workforce. The restructuring, which is set to impact nearly 50% of the company’s ad tech employees, including nearly 1,000 employees this week, is part of a major overhaul of its ad tech division.
The company, which was bought by private equity firm Apollo Global Management in 2021 for $5 billion, stated that the move would allow it to focus and invest more in its flagship ad business, the demand-side platform (DSP). The decision to narrow its focus on DSP comes as many advertisers have scaled back their marketing budgets due to record-high inflation rates and the ongoing uncertainty about a potential recession.
The layoff news comes as several U.S. companies, including Goldman Sachs Group Inc and Alphabet Inc, have also laid off thousands of employees this year in response to the demand downturn caused by high inflation and rising interest rates.
Yahoo was once one of the most popular websites on the internet and was known for its search engine, email service, and news content. However, with the rise of Google and the decline of internet-based businesses, Yahoo has struggled to maintain its relevance. The company has undergone several reorganizations and management changes over the years in an attempt to stay competitive.
The latest restructuring of the ad tech division is not the first time that Yahoo has faced layoffs. In 2016, the company laid off 15% of its workforce as part of a cost-cutting measure, and in 2012, it laid off 2,000 employees in an effort to streamline its operations. The company has been through several ownership changes over the past few years, with private equity firm Apollo Global Management acquiring it in 2021.
The layoffs come as a blow to the employees affected and their families, as well as the wider community where the company operates. The cuts also raise questions about the future of the company and whether it will be able to remain competitive in the rapidly changing world of technology.
Yahoo’s decision to lay off over 20% of its workforce is a reflection of the broader challenges facing the technology industry. With the rise of automation and artificial intelligence, many companies are struggling to keep up with the changing landscape and are forced to make tough decisions in order to stay afloat.
Despite the challenges, Yahoo remains committed to its flagship ad business and its plan to narrow its focus on the demand-side platform. The company believes that the restructuring will allow it to become more efficient and better positioned to compete in a challenging market.
Yahoo’s decision to lay off over 20% of its workforce is a sign of the difficult times facing the technology industry. The layoffs will have a significant impact on the affected employees and their families, as well as the wider community. It remains to be seen what the future holds for Yahoo and whether its restructuring plan will be successful. Nevertheless, the company is determined to remain competitive and focused on its flagship ad business.