The well-established tech firm, Yahoo, is restructuring its advertising division, resulting in over half of the department being laid off by the end of the year. Over the course of the week, nearly 1,000 employees will be impacted by the downsizing. The company is not the only tech firm facing job cuts as many companies are facing a decline in demand, high inflation, and rising interest rates. A spokesperson for Yahoo stated that the decision to restructure was not easy, but will simplify and enhance their advertising business, ultimately providing better value to their customers and partners. The restructuring will also allow the company to concentrate its focus and investment on its main advertising platform, called DSP.
Yahoo has made the decision to downsize its advertising unit as part of a plan to streamline operations. This is due to the current economic climate, with advertisers reducing their marketing budgets and uncertainty about a potential recession. The company aims to shift its focus away from the competition with big players such as Google and Facebook’s Meta for digital advertising supremacy. Yahoo’s new division will be renamed to simply “Yahoo Advertising” and will prioritize support for top global customers and relaunch dedicated ad sales teams for their owned properties, such as Yahoo Finance, Yahoo News, and Yahoo Sports.
The US has seen a surge in layoffs in January, reaching a two-year high, with the technology industry being hit hard. Companies like Google, Amazon, and Meta are trying to find a balance between cost-cutting measures and remaining competitive in the face of shrinking consumer and corporate spending. Mark Zuckerberg, CEO of Meta, has referred to recent job cuts as the toughest changes in Meta’s history, while Twitter also cut a significant portion of its workforce after Elon Musk took control in October.