Yahoo has a total workforce of about 8,600 and is set to let go of 20%.
About 1,000 workers are expected to be out of jobs by the end of the week.
Many other tech giants from 2022 have been laying off several workers due to different reasons including losses.
Yahoo says the lay off is part of a major reorganising.
The company will be letting go of over half of its advertising department.
“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.
Why Yahoo Is Letting Workers Go
The veteran tech company is struggling with a downturn in demand, high inflation and rising interest rates.
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As part of efforts to streamline operations in the company’s advertising unit, Yahoo has to let some workers go.
The firm is seeking to stop competing directly against other tech companies like Google for digital dominance.
According to the spokesperson, “the new division will be called -simply- Yahoo Advertising.
“In redoubling our efforts on the DSP on an omnichannel basis, we will priorities support for our top global customers and re-launch to dedicated ad sales team towards Yahoo’s owned and operated properties”.
Massive Layoffs In Tech
Also, tech companies such as Google, Amazon and Meta have been faced with severe losses over the last two years. The situation forced tough decisions, including massive layoffs.
These companies are seeking ways to balance cost-cutting measures with the need to remain competitive after the COVID-19 pandemic.
“The most difficult changes we’ve made in Meta’s history,” Meta CEO Mark Zuckerberg said regarding the layoffs.
