Yahoo, owned by Apollo Global Management (NYSE:APO), has announced plans to restructure its advertising technology division which will see 1,000 jobs cut, while a further 600 could also go, in the latest of a wave of tech sector layoffs.
According to an interview given by CEO Jim Lanzone, the company intends to reduce headcount at its Yahoo for Business advertising technology unit by 50% by the end of 2023, which equates to more than 20% of the total Yahoo workforce.
Lanzone stated that the restructuring was necessary to create a better business plan for the division and to allocate resources more effectively.
Yahoo is creating a new division called Yahoo Advertising, which will concentrate its advertising sales teams on its own properties, including Yahoo Finance, Yahoo News, and Yahoo Sports. The company is facing challenges from customers who are wary of the uncertain economic climate and the overall industry trend of layoffs.
Recently, technology companies, such as Meta, Amazon, Microsoft, Alphabet, Twitter and Spotify have reduced their respective workforces due to rising interest rates and fears of a potential recession.
Yahoo CEO Lanzone emphasised that the job cuts were not due to troubles in the advertising market, but instead were a result of the division's restructuring.