Yahoo announced plans to lay off more than 20 percent of its total workforce as part of a major restructuring of its ad tech division, joining the growing list of tech companies announcing employee restructuring amid signs of economic slowdown in the Western countries.
The cuts will impact nearly 50 percent of Yahoo’s ad tech employees by the end of this year, including nearly 1,000 employees this week, the company said, Reuters reported.
The company said the move would enable it to narrow its focus and investment on its flagship ad business called DSP, or demand-side platform.
Yahoo’s decision on job cuts come as many advertisers have pared back their marketing budgets in response to record-high inflation rates and continued uncertainty about a recession.
A raft of US companies from Goldman Sachs Group Inc to Alphabet Inc have also laid off thousands this year to ride out a demand downturn wrought by high inflation and rising interest rates.
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