Yahoo said in a statement that it will lay off more than 20% of its personnel by the end of 2023, including 1,000 positions this week alone.
In September 2021, private equity firm Apollo Global Management purchased 90% of Yahoo from Verizon. According to PitchBook data, the company employed around 10,000 employees at the time.
The planned recent layoffs would affect more than 1,600 people, implying that the company’s current head count is closer to 8,000.
The layoffs are part of the company’s larger drive to streamline operations in Yahoo’s advertising arm. The Yahoo for Business segment’s strategy had struggled to live up to our high standards throughout the whole stack, according to a Yahoo representative. To meet ad services, Yahoo said it would focus on its 30-year alliance with Taboola, a digital advertising startup.
According to reports, the business would provide severance packages to domestic employees who have lost their positions, but the size or monetary worth of the severance payouts was not specified.
Companies ranging from Zoom, Dell to Alphabet Inc have let off thousands of employees this year in order to weather a demand slowdown driven by high inflation and increasing interest rates.