Yahoo has revealed intentions to let off more than 20% of its workforce by the end of the year as part of a restructure of its ad tech arm, according to numerous media reports.
The layoffs were initially reported by Axios.
Yahoo CEO Jim Lanzone told Axios that the layoffs are not due to financial concerns, but rather to strategic adjustments to the advertising segment, which has been losing money.
More than 1,600 people in advertising technology will be laid off as a result of the layoffs.
The corporation cut 1,000 jobs on Thursday, and the remainder will be cut in the second part of the year.
Lanzone told Axios that the adjustments will be good for Yahoo’s profitability, allowing the company to spend more significantly in more profitable sections of the business.
According to Axios, the shift will put a stop to Yahoo’s efforts to compete with Google and Meta, Facebook’s parent company, in digital advertising.
The corporation still intends to expand its role in a segment of its advertising business known as its demand-side platform, which assists advertisers in purchasing advertisements across different publisher websites.
This company will be rebranded Yahoo Advertising.
The changes come at a time when several Big Tech companies have made extensive layoffs due to financial difficulties.