Yahoo Plans to Let Go 20% of Employees by end of 2023, Starts This Week
Yahoo plans to let go over 20% of its workforce by the end of 2023, removing 1,000 positions this week alone, as per the company’s statement released on Thursday.
In September 2021, the private equity company Apollo Global Management purchased 90% of Yahoo from Verizon. According to information from PitchBook, the company at that time employed roughly 10,000 people.
According to Axios, the latest layoffs would result in the loss of more than 1,600 jobs, indicating that the corporation currently employs closer to 8,000 people.
The company’s effort to streamline processes in the company’s advertising division includes the layoffs. A representative stated that the strategy for the company’s Business division had “struggled to live up to our high standards across the entire stack.”
“Given the new focus of the new Yahoo Advertising group, we will reduce the workforce of the former Yahoo for Business division by nearly 50% by the end of 2023,” a company representative told news outlet CNBC.
To meet the needs of ad services, Yahoo announced that the company would concentrate its efforts on its 30-year collaboration with the digital advertising firm Taboola.
According to a a company spokesperson, “These decisions are never easy, but 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.”
Per CNBC, the representative said domestic staff who lost their positions will get severance payouts from the corporation. Regarding the size or value of the severance benefits, the company didn’t give any specifics.