yahoo layoffs 2023Yahoo is laying off about 20 percent of its workforce, or 1,600 employees, which will affect half of the company’s ad tech business. In a conversation with Axios, Yahoo CEO Jim Lanzon said that these changes would be “tremendously beneficial to Yahoo’s overall profitability”.
The layoffs will help the company deleverage and invest more in profitable businesses. According to the company, 12 percent of the employees (about 1,000 employees) will be laid off on Friday.
The company said another 8 per cent (600 people) would be let go in the next six months. Lanzon said the total number of layoffs would be more than 50 percent of the ad tech unit’s current workforce and 20 percent of Yahoo’s current workforce.
Yahoo Shutting Down Multiple Businesses,
According to the report, “Yahoo will be spinning off a part of its advertising business called its SSP, or supply-side platform, which helps digital publishers sell automated ads against their content.”
The company will also be shutting down its native advertising platform called Gemini. It will leverage its newly formed partnership with ad tech giant Taboola to sell native ads.
For many years, “the strategy of our advertising business was to compete in the ad tech industry by offering an ‘integrated stack’ consisting of our Demand Side Platform (DSP), Supply Side Platform (SSP) and Native Platform,” a Yahoo spokesperson said in a statement. said in.
“Despite many years of effort and investment, this strategy was not profitable and struggled to live up to our high standards across the stack,” the statement said.
Yahoo joins a growing list of tech companies that have laid off thousands of employees amid tough global macroeconomic conditions.
(with inputs from agencies)
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