Yahoo will fire 20% of its employees
As part of a massive restructuring of its ad tech segment, Yahoo Inc. plans to lay off more than 20% of its overall personnel.
They informed workers on Thursday that 1200 people, or 12% of the company, would be losing their jobs by the end of the day. In the next six months, another 8%, or 600 individuals, will be laid off. Half of Yahoo’s ad technology division will be affected by these layoffs.
Jim Lanzone, CEO of Yahoo, told Axios that the company’s recent round of layoffs is not due to the economy but rather to measures made to bolster the loss-making Yahoo for Business advertising division. Yahoo generates roughly $8 billion in annual sales, making it a profitable business.
Yahoo invested over 25% of its stock in the advertising network Taboola in November, making Taboola Yahoo’s native advertising partner for the next 30 years. These alterations, according to Lanzone’s comments to Axios, will result in eight times as much competition for ad placements at Yahoo; nevertheless, as a result of the move, Yahoo will discontinue native advertising networks like Gemini and its supply-side platform (SSP). Additionally, Yahoo will be rebranding its demand-side platform (DSP) as Yahoo Advertising. A key focus of this department will be on negotiating contracts with large corporations.
Yahoo was acquired from Verizon Media Group by private equity firm Apollo Global Management for $5 billion in 2021.
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