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Yahoo will lay off more than 20% of its workforce by the end of 2023, eliminating 1,000 jobs this week alone, the company said in a statement on Thursday.
Private investment company Apollo Global Management acquired 90% of Yahoo from Verizon in September 2021. According to PitchBook, the company had about 10,000 employees at the time.
Axios reports that more than 1,600 workers will lose their jobs as a result of the latest cuts, putting the company’s current headcount near 8,000.
The layoffs are part of a broader effort by the company to streamline operations at Yahoo’s advertising division. According to a Yahoo spokesperson, Yahoo’s business segment strategy “struggled to meet our high standards across the stack.”
“Given the new focus of Yahoo’s new advertising group, we will reduce the workforce of the former Yahoo Business unit by nearly 50% by the end of 2023,” a Yahoo spokesperson told CNBC.
Yahoo said the company will shift efforts to its 30-year partnership with Tabuladigital advertising company to satisfy 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 better serve our customers and partners,” said a Yahoo spokesperson.
It was not immediately clear what benefits or severance pay the laid-off employees would receive. A spokesperson for Yahoo did not immediately respond to additional questions sent by CNBC.