Yahoo Inc. has announced that it is cutting 20% of its workforce as part of a major restructuring. The veteran tech company is reorganizing its advertising unit, which will see more than half of its employees laid off by the end of the year. Nearly 1,000 people will be affected by the job losses by the end of the week.
Yahoo is the latest tech firm to announce job cuts as companies grapple with a downturn in demand, high inflation and rising interest rates. “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,” a spokesperson said.
The layoffs are part of a broader effort by the company to streamline operations in its advertising division. With advertisers paring back their marketing budgets due to record-high inflation rates and the uncertainty of a recession, Yahoo is now focusing on its flagship ad business called DSP (demand-side platform). The company also plans to launch dedicated ad sales teams towards Yahoo’s owned and operated properties, such as Yahoo Finance, Yahoo News, Yahoo Sports, and more.
The job cuts come at a time when the US is facing its highest unemployment rate in decades. The tech industry has been hit particularly hard, with the likes of Microsoft, Google, Facebook, and Apple all announcing job cuts in recent months. While tech companies are trying to stay afloat amid the pandemic, the job losses are a warning sign of a wider economic downturn.
2023-02-10 05:53:57
Link from www.bbc.co.uk
Online search giant Yahoo has recently announced plans to cut its workforce by 20%. This move is viewed as part of the company’s ongoing strategy to restructure its business operations in order to remain competitive and focused in their core services.
The job losses are expected to occur mainly at the foreign offices and locations outside of the US. This means that Yahoo’s operations in Europe and Asia will be most affected. The job cuts will also affect staff in the US, although the precise number of cuts has not been announced.
This decision is a major part of the extensive restructuring of Yahoo’s business operations, which began in 2012. The company announced plans to reduce its workforce by 2,000 people at the start of this process. The aim was to restructure the business to create a more agile and efficient organisation.
Yahoo has been through a period of change since the arrival of CEO Marissa Mayer in 2012. Under her leadership, the company has undergone a hugely successful transformation from a search engine to a content and advertising provider.
The job cuts will not only help Yahoo in its quest for long-term sustainability, but it is also likely to boost the company’s stock price. The company’s value has suffered in recent years due to slowing economic growth and competition from rivals such as Google and Microsoft.
Overall, Yahoo’s plan to cut its staff by 20% is a bold move that is likely to provide the company with the financial resources it needs to compete in an increasingly competitive market. However, it is also likely to have a negative effect on the morale of its employees who will be affected by the job losses.