Yahoo mentioned Thursday that it’s going to reduce 20% of its whole workforce by the top of this yr because it restructures its promoting unit, simply the newest instance of the layoffs spreading all through the tech and media industries.
A Yahoo spokesperson instructed CNN that the corporate’s legacy advert tech division, Yahoo for Enterprise, shall be overhauled and reworked into a brand new division referred to as Yahoo Promoting. As a part of that change, Yahoo plans to chop almost 50% of the division this yr, “together with almost 1,000 workers this week,” the spokesperson mentioned.
“These choices are by no means simple, however we consider these adjustments will simplify and strengthen our promoting enterprise for the long term, whereas enabling Yahoo to ship higher worth to our prospects and companions,” the spokesperson mentioned in a press release.
Axios, which was first to report the information, mentioned the job cuts will impression greater than 1,600 folks in whole. Yahoo didn’t instantly reply to a request for touch upon the matter.
Yahoo CEO Jim Lanzone told Axios in an interview that these adjustments shall be “tremendously helpful for the profitability of Yahoo general,” and can permit the corporate “to go on offense” and make investments extra in different components of its enterprise which can be worthwhile.
The announcement comes as a rising variety of tech and media corporations are slicing prices to regulate to a pullback in digital promoting spend amid broader uncertainty within the international financial system.
As soon as synonymous with the web itself for a lot of the Nineteen Nineties, Yahoo struggled to seek out relevance in subsequent a long time as Google dominated search and social media platforms like Fb, Instagram and YouTube changed it as main on-line locations.