Yahoo to Lay Off Over 20% of Staff amid Restructuring Efforts

Yahoo has announced its plans to lay off more than 20% of its workforce as part of its restructuring efforts in the ad tech division. The cuts are expected to impact nearly 50% of Yahoo’s ad tech employees by the end of the year and nearly 1,000 employees this week.

The company, which is owned by private equity firm Apollo Global Management, stated that the restructuring will allow it to narrow its focus and investment on its flagship ad business, DSP (demand-side platform). The move comes amid an advertising industry slowdown due to high inflation rates and economic uncertainty, which has led to many advertisers reducing their marketing budgets.

The news of the layoffs was first reported by Axios and comes amid a larger trend of U.S. companies including Goldman Sachs and Alphabet laying off thousands of employees in response to the demand downturn caused by high inflation and rising interest rates.