Yahoo is the latest tech giant to announce plans to lay off 20% of its staff.

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As part of a massive restructuring, Yahoo expects to fire off more than 20 percent of its total 8,600 staff.

Over half of the advertising department at the venerable software firm will be eliminated in a restructuring set to be completed by the end of the fiscal year.

By the weekend, the layoffs will have touched nearly a thousand workers.

The internet industry is feeling the effects of the slowing economy, increasing prices, and rising interest rates, with Yahoo being the latest company to announce layoffs.

A Yahoo representative told the BBC, “These decisions are never easy, but we believe these changes will simplify and improve our marketing business for the long term while enabling Yahoo to deliver better value to our consumers and partners.”

Yahoo, which has been acquired by the private equity firm Apollo Global Management since a $5bn takeover in 2021, said the decision would allow the company to refocus its focus and investment on its primary ad unit known as DSP.

Promotion is always evolving.

This round of layoffs is part of Yahoo’s larger endeavor to consolidate its advertising division.

In light of the prolonged economic uncertainty and record-high inflation, many advertisers have reduced their marketing budgets.

The shift in strategy indicates that the company would no longer challenge Google and Facebook’s Meta for supremacy in digital advertising.

A Yahoo representative further said, “The new segment will be named – simply – Yahoo Advertising.”

“In redoubling our efforts on the DSP on an omni-channel basis,” Yahoo explains, “we will prioritize support for our top worldwide clients and re-launch dedicated ad sales teams for Yahoo’s owned and operated properties, including Yahoo Finance, Yahoo News, Yahoo Sports, and more.”

  • Why are major tech firms laying off so many people?

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A survey released on Thursday revealed that the number of layoffs in the United States had reached its highest point in over two years as the technology sector, traditionally a stable employer began shedding workers at the second-fastest rate on record in preparation for a potential recession.

After the epidemic, consumers and businesses alike have cut down on spending due to high inflation and increasing interest rates, leaving companies like Google, Amazon, and Meta to struggle to find the right balance between decreasing costs and maintaining competitiveness.

When asked about recent layoffs, Meta CEO Mark Zuckerberg called them “the most difficult moves we’ve made in Meta’s history,” while Twitter let off over half of its employees when multi-billionaire Elon Musk seized control in October.

 

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