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Yahoo will lay off more than 20% of its workforce by the end of 2023 and will cut 1,000 jobs this week alone, the company said in a statement Thursday.
private equity company Apollo Global Management acquired 90% of Yahoo from Verizon in September 2021. According to PitchBook data, the company had about 10,000 employees at the time.
Axios reported that more than 1,600 workers would lose their jobs in the latest cuts, suggesting the company’s current headcount is closer to 8,000 employees.
The layoffs are part of the company’s broader effort to streamline operations at Yahoo’s advertising unit. According to a Yahoo spokesperson, the Yahoo for Business segment’s strategy had “struggled to live up to our high standards across the stack.”
“Given the new focus of the new Yahoo Advertising Group, we will be reducing the workforce of the former Yahoo for Business division by nearly 50% by the end of 2023,” a Yahoo spokesperson told CNBC.
Yahoo said the company will shift its efforts to its 30-year partnership with tabolaa digital advertising company to fulfill advertising services.
“These decisions are never easy, but we believe these changes will simplify and strengthen our advertising business over the long term, while enabling Yahoo to deliver better value to our customers and partners,” the Yahoo spokesperson said.
It wasn’t immediately clear what benefits or severance payments layoff employees would receive. A Yahoo spokesman did not immediately respond to follow-up questions from CNBC.
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