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Yahoo said on Thursday it plans to lay off more than 20 percent of its total workforce as part of a major restructuring of its ad tech division.
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.
Yahoo, which is owned by private equity firm Apollo Global Management since a $5-billion buyout in 2021, added that the move would enable the company to narrow its focus and investment on its flagship ad business called DSP, or demand-side platform.
This comes 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 U.S. 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.
Axios first reported the news of the layoffs at Yahoo.