Yahoo plans to lay off more than 20% of its staff by the end of the year, the company confirmed in an email. A Yahoo spokesperson said about 1,000 people are expected to lose their jobs by the end of this week.
“These decisions are never easy,” the spokesperson told CNET. “We believe these changes will simplify and strengthen our advertising business for the long run, while enabling Yahoo to deliver better value to our customers and partners.”
Yahoo said it plans to cut about 50% of the workforce from its ad tech division, called Yahoo for Business.
The layoffs were reported earlier by Axios, which interviewed Yahoo CEO Jim Lanzone. He told Axios that Yahoo isn’t getting out of the ad business and said the company plans to hire more roles in one part of Yahoo’s demand-side platform, or DSP. Yahoo’s DSP helps advertisers buy ads across multiple publisher websites, according to the report.
Lanzone told Axios that Yahoo’s DSP generates “billions in revenue.” The publication reported in November that Yahoo brings in about $8 billion in annual revenue.
Yahoo is the latest tech company to announce layoffs, joining others like Zoom, Dell and IBM. Disney said Wednesday that it would cut about 7,000 jobs from its workforce.
For more, check out how many jobs Amazon, Meta and Google have recently cut.
Watch this: I’m leaving my job. What to do with my 401(k)?
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