Yahoo mass layoffs, 20% payroll hit

Yahoo is starting a massive wave of layoffs as a result of a new advertising strategy led by its new parent company.

Yahoo is the latest tech company to announce a big wave of layoffs, but the reason is slightly different. In an interview regarding this announcement of parting with 20% of his salary, the Yahoo director clarified that this had nothing to do with the company’s financial situation. Unlike Twitter, Alphabet, Dell or Disney, which have been affected by the pandemic.

Yahoo begins a huge wave of layoffs

Yahoo is in a different situation. She lost her important position that she had a few years ago. Verizon bought the company for billions of dollars in 2016, later introducing the Oath brand, which includes AOL and Yahoo. Verizon managed to resell everything for half the amount it paid in September 2021 to Apollo Global Management. Under its new parent company, Yahoo has become more or less Yahoo again – it existed as Verizon Media alongside AOL – and today the company is making a big strategic shift in its advertising operations.

Yahoo has a new advertising strategy led by a new parent company.

At the time of its acquisition, then-CEO Guru Gowrappan said that life under Apollo would mark a “new era”for the company. Guru Gowrappan was then given a senior consultant role, and Yahoo named former Tinder chief executive Jim Lanzon as its new CEO. In an interview published by Axios, the latter announces that Yahoo will lay off more than 1,600 people, or about 20% of the total payroll. The reason is purely strategic, Yahoo has decided to no longer try to compete with giant Google in the advertising world.

This wave of layoffs will consist of two parts: most employees are leaving today, the fate of the last – about 10% – will be decided in the second half of 2023. Yahoo plans to switch to Taboola instead of its own Gemini. advertising platform, which is also important. Axios says Yahoo will be phasing out its vendor platform to focus on an on-demand platform, which will be known as Yahoo Advertising. Judging by this interview, it appears that Yahoo is now looking to focus entirely on its own assets, such as Yahoo News, as well as advertising deals with Fortune 500 companies for the time being.